Evetsgold: on probabilities, you are likely to be right.
But my reasoning behind the 20% weighting is as follows: - Forager has been on record to recognise the friction of getting in and out of some of the smaller less liquid positions. I think over time the nature of the liquidity of the portfolio will improve. - Their stated best defence against the discount is long term outperformance. I am happy to give this more time, but given recent outperformance, I am starting to doubt if it will work. Outperformance over the long term will be useless if shareholders cannot exit at NAV. - I think they will have to take more drastic measures to close the discount. If it gets larger, it could be a scenario for activism.
I don't know if it is possible, but an unlisted fund with a monthly cap on redemptions may work?
FOR Price at posting:
$1.67 Sentiment: Hold Disclosure: Held
