Ann: Investment Update & NTA April 2018, page-17

Interesting discussion. At the briefing Wilson claimed WLE selling below the NTA was due to traders buying the options and then converting to shares for a small profit margin and so creating selling pressure on the shares. Thus the new Global fund does not have options attached to avoid this.

I am sceptical. I suspect you are right. Wilson has made his name in smaller cap shares and the market thinks he may have trouble doing as well consistently in larger cap stocks. Time will tell. I suspect the market may be sceptical Wilson can perform in overseas markets as well (they are investing up to $3 billion market cap firms) as they have no track record and new staff. I am not taking any Global up as they may also trade below NTA at the start despite having no options.

If Wilson is right the lack of options will have them trading at NTA or above. If I am right and the market is worried about Wilson getting outside his area of expertise then it will trade at a discount. If he does outperform consistently in WLE and Global then the shares will become a buy as they will eventually sell at a premium, but he has to create the track record first.