Forum is generally bullish about this stock but the recent...

Forum is generally bullish about this stock but the recent announcement lead me to sell, and waiting for a more attractive entry point (15-16c support)

This companies future is far from certain but does offer a very healthy payoff if funds resume growing.

The bulls on this post seem to gloss over the fact that HFA may very well experience a decrease in FUM this year, if that was to happen (say a 10-15% decrease) this will wipeout profits.

This years revenues will be reduced due to a low beginning FUM and reduction in the contribution from the higher margin Australian business.

Other bearish things to consider. Despite the turnaround in global hedge fund money flows this has not happened for Hedge fund of funds. HFA are still suffering from fund outflows (up to Q209 - still confused as to whether investors can withdraw cash from all of their funds). Lack of buying from insiders. Possible reduction in fees (very high in Australia).

On the bullish side - a continued rebound in markets will eventually lead to inflows and if HFA can just maintain FUM this year they will make a great buy. A strengthening Yank dollar will also help profits and counter a major stockmarket pullback (assuming flight to saftey to the US dollar).

Interested to hear any feedback. Maybe I am being too bearish around my cost base assumptions. And can anyone confirm wheather any funds are still locked up.

1st post. cheers.