Sector: Financials / Asset Management (Liquidating)
What do they do?
Historically, Mongolia Growth Group was a real estate investment and development firm focused on the emerging market of Ulaanbaatar, Mongolia. However, as of 2025–2026, the company has transitioned into a liquidating holding company. Its primary activities now include:
- Asset Divestiture: Systematically selling off its remaining commercial and residential property portfolio in Mongolia
- Capital Allocation: Managing a significant cash pile and a legacy portfolio of public US/Canadian securities
- Wind-down Operations: Executing a board-approved plan to return capital to shareholders and eventually delist/dissolve
Current "Product"
The company's "best" product was previously KEDM, a highly profitable financial data subscription service. However, the company sold the KEDM business in November 2025.
Today, the "product" is effectively the company's balance sheet. Investors are no longer buying an operating business; they are buying a claim on a pool of cash and liquid securities.
Do they have a competitive advantage?
In its current state, MNGGF does not have a traditional product moat. Its advantages are structural and managerial:
- Harris Kupperman's Stewardship: The CEO is a well-known hedge fund manager (Praetorian Capital) with a track record of identifying macro trends
- Shareholder Alignment: Management owns ~28% of the company, ensuring they are incentivized to return maximum value to shareholders rather than wasting cash on corporate overhead
- Discount to NAV: The company often trades at a significant discount to its Net Asset Value (NAV), allowing the company to buy back its own shares "for cents on the dollar," which mathematically increases the value for remaining holders
Key Competitors
- For Investors: Competes with other "micro-cap value" plays and "cannibal" stocks (companies that aggressively buy back shares), such as Imperial Equities or Becker Milk
- For Assets: In Mongolia, competes with local conglomerates like MCS Group and Tavan Bogd for the remaining pool of real estate buyers
Who are the leaders?
The leadership team is small and focused on the final stages of the company's lifecycle:
- Harris "Kuppy" Kupperman (CEO & Chairman) - B.A. in History from Tulane University (2003); Founder of Praetorian Capital and author of the Adventures in Capitalism blog
- Genevieve Walkden (CFO) - MBA from the University of Iowa; CAIA, CFP, and Six Sigma Black Belt
Are the financials strong?
From a liquidity and solvency standpoint, the financials are exceptionally strong:
- Zero Debt: The company has virtually no long-term debt
- Cash Heavy: Following the sale of KEDM and major properties in late 2025, the company reported a massive cash surplus
- Current Ratio: Recently reported at over 29x, meaning they have $29 in liquid assets for every $1 of short-term liabilities
Weakness: Operating revenue is non-existent now that the subscription business has been sold.
How is the valuation?
The valuation is currently a deep-value "liquidation" play:
- Price-to-Book (P/B): Historically trades between 0.60x and 0.80x
- The Opportunity: The stock typically trades at a 20-40% discount to the actual cash and stock value held in the company. As the company returns this cash to shareholders in 2026, the gap between the stock price and the asset value should close
Final verdict
Classification: Special Situation / Deep Value
MNGGF is no longer a "growth" company. It is a melting ice cube of high-quality assets. If you trust Harris Kupperman to exit the remaining Mongolian properties and return the cash to shareholders without wasting it on high fees, the stock represents a way to buy $1.00 of assets for roughly $0.75.
Warning: Liquidity is very low. This is a "set it and forget it" play for patient value investors rather than active traders.
This analysis is for informational purposes only and should not be considered financial advice.