It works very nicely for the fund manager. They are exposed to the upside more than the average retail investor via potential to gamble on bigger performance fees. If they fail with their punts, sure they may own a few shares and suffer downside like us. However, this downside is cushioned by the fat 1.5% management fee and board fees for the directors etc, us retail punters have no such protection on the downside. There is a director that barely owns one year's worth of fees in the stock, so VG1 could fall to zero and the remuneration over the year could probably cover it!
As I said, it is a bit like at the racetrack and the get out stakes in the last, to save the horrible record since 2017. In this case it is other people's money they shall punt with.
So I congratulate Regal and staff doing a deal that is great for RPL. No wonder that stock rose yesterday without the help of the buyback demand, that is the real market reaction about who wins in this. Glad to see how they have changed when acquiring PM Captial and building relationships with retail investors. Not. Same same Regal.
VG1 Price at posting:
$1.89 Sentiment: Hold Disclosure: Held
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