Hipgnosis, the investment fund that owns the rights to songs by artists such as Britney Spears, Rihanna and Christine McVie, the Fleetwood Mac member who died last week, has maintained the value of its catalogue at £1.8billion despite its shares trading at a discount.
In results for the six months to September 30, its net asset value at the end of the period was 164p per share despite its 81.9p share price yesterday.
The value had declined to just under 150p by December 6, leaving the shares at a 45 per cent discount.
Legacy: Investment fund Hipgnosis owns the rights to songs by artists such as Britney Spears, Rihanna and Fleetwood Mac’s Christine McVie (pictured)
Hipgnosis boss and former pop star manager Merck Mercuriadis said the fund’s investment thesis remained ‘robust’ as it reported half-year revenues of £64million, up from £60.6million the year before, while losses narrowed to £13.3million from £14.7million.
But his optimism masked discontent among some investors, who think Hipgnosis has overpaid for the thousands of songs in its library, which also includes artists such as Shakira and the Red Hot Chili Peppers.
Investors have suggested it sell minority stakes in some catalogues, announce share buybacks or find new ways for songs to generate income.
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