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Chesswood Group Ltd T.CHW

Alternate Symbol(s):  CHWWQ

Chesswood Group Limited is a Canada-based holding company. The Company, through its subsidiaries, engages in the business of specialty finance (including equipment finance throughout North America and vehicle finance and legal sector finance in Canada), as well as the origination and management of private credit alternatives for North American investors. Its subsidiaries include Pawnee Leasing Corporation (Pawnee); Tandem Finance Inc. (Tandem); Waypoint Investment Partners Inc. (Waypoint), Chesswood Capital Management Inc. and Chesswood Capital Management USA Inc. (CCM USA); Rifco National Auto Finance Corporation, and 1000390232 Ontario Inc (Easy Legal). Pawnee, which finances micro and small-ticket commercial equipment for small and medium-sized businesses in the United States through the third-party broker channel. Tandem sources micro and small-ticket commercial equipment originations to small and medium-sized businesses through the equipment vendor channel in the United States.


TSX:CHW - Post by User

Post by 419lornestreet9on Mar 10, 2022 12:06pm
221 Views
Post# 34503379

honest question

honest questionmarr is the CIO at waypoint.
waypoint discloses its top 25 holdings each quarter.
chesswood was number 3 as of march 31.
chesswood is no longer in the top 25 (as of june 30 it was sold).
i know he and the management team continue to have material ownership and waypoint clients have exposure through other accounts.

however - if the outlook is so strong - wouldn't marr have it as a top holding in his fund? or a holding? they are still sitting on 50% cash in the fund.

seems odd.

a few other weird observations:
 - us portfolio prime share peaked in Q1. now at 64% down from 69%, but asset yield still contracting?
 - announcement of rifco close included a mention of lowering cost of funds, but did not quantify. in the md&a, they mention a 75 bps reduction. that is material ontop of the securitization in october. why not disclose it with the announcement. i have never known a management team to withhold materially positive information
 - they hired another waypoint PM to also work at chesswood (look at employee list on LinkedIN). ontop of Jeff Fields leading Chesswood Capital and the other related party stuff.

we have benefited a lot as shareholders recently (if you bought during 2020). not sure who is going to benefit more going forward (us or senior management).

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