The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Holmes Perseveres in U.S. Global's Acquisition Hunt Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, November 12, 2014

Holmes Perseveres in U.S. Global's Acquisition Hunt

Reported by Neil Anderson, Managing Editor

U.S. Global Investors [profile] CEO and chief investment officer Frank Holmes continues to look at acquisitions, though he says the process for their niche may be a little longer than for others. Holmes' top executives also have updates on their ETF plans and their cost-cutting efforts.

On November 5 the San Antonio, Texas-based boutique mutual fund shop (which specializes in emerging markets and natural resources, as well as domestic equities and municipal bonds) reported a loss of $0.01 per share for its fiscal 2015 first quarter, down year-over-year from a negligible net loss (which rounded to $0.00 per share) [see the earnings release]. Q1 revenue rose about $200,000 year-over-year to $3.3 million in fiscal Q1 2015. Assets under management dipped $100 million year-over-year to $1.1 billion on September 30, 2014.

Last year U.S. Global bought a 50-percent stake in Toronto-based Galileo Global Equity Advisors, and in June 2014 U.S. Global bought another 15 percent of Galileo. In an earnings call on November 6, Holmes told analysts that he's "always ... looking at other opportunities to expand our footprint in our platform" [see Seeking Alpha's transcript of the earnings call]. Yet Holmes says that U.S. Global's niche, especially in natural resources, and the heavy regulation around that niche slows Holmes' dealmaking:

... [T]hat process now takes so much longer.

Everything, there is just so much friction in that process but you know what even with all of that, we are still [persevering] and we sign agreements on a regular basis looking at opportunities ...

Lisa Collicotte, chief financial officer at U.S. Global, also talked about efforts to trim the shop's cost structure. Part of that trimming, Collicotte said on the call, comes from being "able to adjust bonuses to align with [the firm's] revenues."

And in conjunction with restructuring some of our products, we also made some staffing reductions ... [w]e are always trying to streamline our other costs also.

We are reviewing processes and procedures and we're trying to distinguish between our needs and our wants, concentrating on what is going to be the most efficient and effective ways of getting to where we want to be.

So, as we do that, we challenge each employee and our department to look at the processes and reduce or eliminate cost when possible. For example, one of the things that we look at is our travel expenses and we've been critically looking at which conferences we plan to attend and we are continuously reviewing the benefits that we receive for each of the items that we participate in.

Also on the call, U.S. Global president and general counsel Susan McGee confirmed that U.S. Global plans to launch its ETFs soon:

We're busy behind the scenes working to finalize these products and the services and service providers involved with those products and we are expecting a launch in the first of 2015.

To dig deeper into U.S. Global's results, read the earnings release or Seeking Alpha's transcript of the earnings call. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2022: Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

  1. Irish Funds Annual Global Funds Conference 2022, May 30-31
  2. WealthManagement Edge, May 31 - June 3
  3. MFDF 2022 Fund Governance and Regulatory Insights Conference, Jun 8-9
  4. 28th annual Expect Miracles East Coast Classic, June 9
  5. 2022 Sohn Investment Conference, June 9
  6. IDC webinar - Cybersecurity for Fund Boards: The Current Landscape, June 9
  7. MMI webinar - Driving Business Value with Artificial Intelligence & Data, June 15
  8. MFDF webinar - Key Takeaways From Morningstar's 2021 Annual Fund Fee Study, June 16
  9. MFDF Director Discussion Series - Open Forum (Chicago), June 21
  10. 2022 MMI Emerging Asset Managers Forum, June 23
  11. MFDF In Focus: Capitol Hill, A Conversation with Congressman Bryan Steil, June 28
  12. Financial Planning INVEST, Jun 28-29
  13. MFDF webinar - Differentiating Mutual-Fund-to-ETF Conversions, July 19
  14. MFDF Director Discussion Series - Open Forum (New York), July 20
  15. 2022 MMI Distribution Leadership Forum, Jul 20-21
  16. MFDF webinar - Fund Boards' Oversight of Investment Performance, July 28
  17. MFDF webinar - Performance, Perception and Manager Selection, September 14
  18. 2022 ICI Tax and Accounting Conference, Sep 18-21
  19. 5th annual Expect Miracles Atlantic Coast Classic, October 3
  20. Nicsa Fearless Leadership Symposium, Oct 6-7
  21. 2022 MMI Annual Conference, Oct 19-21
  22. 2022 IDC Fund Directors Conference, Oct 24-26
  23. 18th annual Expect Miracles Wine & Spirits Event, October 27
  24. Nicsa 2022 General Membership Meeting, October 31 - November 2
  25. Tiburon CEO Summit XLIII, Nov 7-9
  26. 2022 ICI Tech Summit, Nov 8-9

©All rights reserved to InvestmentWires, Inc. 1997-2022
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use