I was very sceptical of the benefits of listing a small sized deep value managed fund, specialising in unloved small cap and micro cap stocks, on the ASX . I suspected that it could easily plunge into deep discount to NTA to the detriment of holders who at some stage might need to sell. I told SJ that during the unitholder consultation process.
I would have preferred they remained unlisted, so I would recover full value when selling my units.
who knows if and when they will return to a premium.
I know of many LICs that have been at sizeable discount for many years. Especially small funds.
I understand the taxation and other benefits of LICs and LITs over unlisted funds. However I don't think that deep value micro /small cap funds with a tiny market cap are suitable as they are very susceptible to falling into a discount. They traded at a premium after listing because their unlisted fund had been very successful for 5 years so everyone assumed SJ could do no wrong. But the disappointing past 12 months performance has clearly blown that belief away.
yes I could purchase more units at a discount
but for diversification reasons I don't want more money in Forager. And I suspect this style of investment will result in continuing discount to NTA
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