future movement, page-96

If only one of SOR's members is responsible for the 1000% growth within the last twelve months, that could be a bit of a threatening problem.


IIRC a PDF can only hold at most 30% of its book in any one fund member, must own at least 10% of a company it invests in, and can only onboard small-to-medium enterprises with MktCap of less than 50m (at the time it invests in them, unsure if a Fund Member that grows to $51m MktCap either gets booted from the Fund or is allowed to stay).

EG: SOR went from $18m mktcap in March to to $300m MktCap today. A 17x increase. 272m of its MktCap is being supported off the strength of the market's love for printable memory and the promise of tax-free gains, but nobody is currently selling printable memory or has valued the company that might someday profit from printable memory.
(All purely spec value, all entirely at risk if either the fundamentals don't support that price.)

IE: 90% of the company is tied up in printable memory spec because its value exploded after a speculators' & daytraders' run.

If those other portfolio members haven't been growing anywhere near as fast as the exploding member, so the book may be significantly imbalanced in % terms already, requiring a rebalancing of the book.


PDFs are borderline exotics - normal market analysis, typical market behaviours, FA & TA really don't apply.