The following segment was excerpted from this fund letter.
PICO Holdings (PICO) is an esoteric but highly underpriced US asset play, representing many of the crazy facets at play in investment markets at present, which leave selected securities vastly underpriced, viz:
- a slightly complex structure over one of the main assets,
- potential for forced selling by index-benchmarked funds as the company (rightly) repurchases shares at (in our view) around half asset value; and
- the necessity to have a little patience given the nature of the asset - water.
PICO Holdings is a focused investor