"One major shareholder told The Australian Financial Review that...

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One major shareholder told The Australian Financial Review that the fund had relied too heavily on tech and growth stocks chosen by stock pickers at the Sohn conference, which left it exposed to a sharp downturn in the sector in 2022.

That downturn caused the fund to re-evaluate its strategy and how the portfolio was constructed, a decision Mr Cuffe believes will help reduce the discount.

“Ahead of the conference stocks, we now run risk control of the picks,” he said. “If they were all in one sector or are all in small caps, or if there’s too much concentration risk, we go back to the particular manager and say, you need to change your stock. We’re more like the conductor of an orchestra now.”

Gotta love this one. What an amazing innovation. After a bad 2022, they now decide of paying attention to this revolutionary new concept, risk control and some very basic diversification checks.