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Markel's (MKL) 11% dive following the Alterra (ALTE) acquisition announcement allows investors...

Markel's (MKL) 11% dive following the Alterra (ALTE) acquisition announcement allows investors to buy into the brilliantly performing insurer at book value, writes The Brooklyn Investor. A key: Much of Alterra's investment portfolio is in cash and fixed income - reallocating that into equities under the stewardship of Markel CIO Tom Gayner (17% CAGR of BV/share since 1990) should make for a good deal of upside. (Acquisition presentation)
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Comments (2)
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    MKL's roll up strategy would be ideal to purchase (MRH) or (AHL) way below tangible book value.

     

    Both are incredibly cheap, highly profitable and hold most of their portfolios in cash and fixed income. So adding that liquidity to the 20% CAGR MKL investment formula would be a huge benefit for shareholders.
    24 Dec 2012, 01:19 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (5657) | Send Message
     
    Indeed; that was a stellar opportunity.
    8 May 2014, 01:19 PM Reply Like
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