The Gabelli Global Financial Services Fund on Guoco Group Ltd.
Thesis
Guoco owns a collection of financial-services, real-estate, gaming, and hotel assets and has strong family ownership alignment. Gabelli highlights stakes in Hong Leong Financial Group and Bank of East Asia alongside other operating assets. The valuation is central to the thesis, with the shares trading at a deep discount to tangible book value and at a low earnings multiple.
“The common stock trades at 35% of TBV and 5.1 times LTM earnings.”