Edison Reviews Tetragon Financial Group's FY23 Performance

Tetragon Financial Group reported a 6.4% net asset value (NAV) per share total return in FY23, as noted in a recent analysis by Edison Investment Research. This performance, which is characterized by a low correlation with broader market movements, stood in contrast to the 26.3% return of the S&P 500, which was buoyed by advances in artificial intelligence (AI).

The report highlighted that Tetragon's return on equity for FY23 was 5.5%, which is below its usual target of 10–15% per annum. Despite this, the company's historical performance since its listing remained within the target range at 11.3%. Tetragon continued its shareholder distributions, disbursing $83.6 million through buybacks and dividends, equivalent to 3.0% of the opening NAV and representing a 4.4% dividend yield.

Specific factors influenced Tetragon’s 2023 performance. These included positive outcomes in the Ripple case, progressive developments at an Australian gold project, and promising updates from a biotech company on potential cancer and autoimmune therapies. The portfolio's growth was primarily due to listed equities oriented towards biotech and AI, alongside private equity gains linked to Ripple Labs and the gold project.