Last time during market correction in March, VG1 manage their potfolio very well the NTA has grwoth to above 2.6/ share.
The recent underperformance was mainly caused by unrealistic AUD surge. Investor forget last financial crisis it is China help Australian out of the crisis. However this time China has their own problems and the relationship between China and Australian is worsen recently. China is one of the main market for Australian agricuture, mining, education and tourist industry. Therefore if the relationship between these two countries not improved Australian economy will be hit hardly, Aussie dollar will be drop further.
VG1's currently has 60% net exposure, and I believe they will adjust it during market movment. In March market correction their short positions were only 19% and their return is great, this is because the stock they sell are more fragil and will drop more. Currently the short positions have increased to 28%. Wow......
And nobody know where is the bottom, so if you sell all you positions and wait you will lost the largest market surge oppotunity.
I do not understant those who sold VG1, were they only based on the NTA to do their investments? Investment is more about risk trade off and more about what you look at futures.
For those talk about SP rather than NTA, please think about this SP is more volatile because investors are not always reasonable. However in the long term chose the manager you believe their strategy will win. Forget short term market movement please.
VG1 Price at posting:
$1.97 Sentiment: Buy Disclosure: Held
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