FPA Crescent Fund on Prosus N.V.
Thesis
Prosus is becoming more profitable across its e-commerce portfolio and improving cash generation. The company has been repurchasing shares, funded partly by Tencent share disposals, while its shares trade at a discount to underlying net asset value. Execution concerns surrounding acquisitions and investments have pressured the stock even as operating results improve.
“Prosus also continued its open-ended share repurchase program, which is supported in part through sales of Tencent shares”
Key risks
- Acquisition and investment execution risk
- The discount to underlying net asset value may persist
- E-commerce cash generation may disappoint