I agree with your thoughts PJ. I no longer hold myself but have some in a portfolio I manage for my parents.
I’d guess the current premium is ~25%. By my book that means they need to outperform the market by 25% after fees ... forever to justify that premium. But, given fees/costs are about 1.5% +20% of outperformance they’d need to outperform by ~33% (forever) before fees/costs! IMO the WMI team are very good ... just not that good!
So I sold 1/3 this morning, kept 2/3rds for now as the market can stay irrational for quite some time ... and may even become more irrational. Also, trade is very thin so being brutal on buy or sell can easily swing the price 5%.
Cheers
WMI Price at posting:
$1.90 Sentiment: Hold Disclosure: Held
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