Free cash flow is indeed improving but the share price can't grow exponentially of FCF. The market has gone mad with growth in stocks with no earnings and little chance of those earnings catching up. Don't you think with all the lockdowns being nearly over, the chance for exponential PINS subscriber growth is over? I mean if there was going to be a growth in subscriber numbers that would have already happened, right?. It's possible but the risk is too great for the fund - just a feeling.
No, I am not saying that VGI is a bad manager. You look at all the growth and it is in pricey stocks. These are too great a risk to chase and VGI might be best to stay out of it. Especially so since they have a bad habit of reacting too slowly.
I like your point "hold a fund with discount and short position are far more better then hold those with premium.". I must admit I have never thought of it this way but isn't sub NTA a lack of confidence in the manager thing?
VG1 Price at posting:
$2.24 Sentiment: None Disclosure: Held
(20min delay)