Interest income $40m, costs $10m. Investors have 25% of their returns chewed up by mostly management fees and also some costs.
This should always trade at a 10-15% discount because of insane fees and costs.
In times like these, the risk at today's prices is hugely skewed to the downside though.
Liquidity is so thin, because mostly owned by advisors who just tell clients to do nothing. However, if advisors start telling clients to sell, it's going to be a bloodbath.
Unfortunately, this is such a good stream of management fees for Qualitas, even if this trades way down, they will be reluctant to do buybacks and reduce their FUM.
Could get interesting at some point but far from it at these levels.
QRI Price at posting:
$1.45 Sentiment: Sell Disclosure: Not Held
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