BTT: JO Hambro performance fee continues to grow

JO Hambro’s underlying performance fee estimate for the first two months (January and February) is tracking at ~$49m. This compares to $73m for ALL of calendar year 2015, and $37m for the entire 2014. The performance fee was tracking at ~$33m at the end of January, so there is a further ~$16m gain. In our last note (attached) we highlighted how the performance fee potential has significantly grown in the last few years, with 1% out-performance now worth over $40m in revenue, whereas it was $12m a few years back. In addition to strong performance fee potential, the company has robust organic growth, particularly in the JO Hambro business. BTT remains a top pick, and we reiterate our Buy recommendation with a $13.60 Price Target.