Emeria - comment

We are closing out our position in Emeria. Having lost two points and some carry, we are unwinding this position in line with timing originally outlined in our investment memo. The company slightly outperformed our expectations, although not by much. More importantly, management suggested decisively that the volume of M&A will be reduced drastically and just about in time to preserve liquidity and scrape through H125 without being forced to access market or shareholders. This name therefore may not have a trigger in the short term and as per initial IM, we are fundamentally constructive on Emeria and believe management are doing the right thing. We will update our thoughts in more detail in the coming week.