Joe, at least we agree about the cash weighting ! Discounts to...

Joe, at least we agree about the cash weighting ! Discounts to NTA are fine…. But at some stage they
have ? To close……. Or do they ? What will be the catalyst for GC1 to close ? Yes, the stock quality has improved dramatically, but the problem with LICs (and you only have to look at the Wilson stable of funds) is that the SP movement isn’t necessarily dependent on the managers performance or return. It’ s dependent on the confidence of current and potential investors. If there is little confidence in the fund and/or manager per se, then investors will not buy in and if there is no capital appreciation and or, as it has happened that the SP and/or performance declines dramatically, if there are few new buyers and no strength, then current investors will be either locked in at a loss or on weakness of demand. Yes, GC1 now, doesn’t have a bad portfolio of holdings and has a healthy cash balance, but a stocks SP will only go up if the market (and that includes potential investors) recognises the managers expertise to add value which leads to a rising SP and the ability to (eventually) extract a capital gain. This ain’t happened now for years !