One of the advantages of small LICs is that they can, in theory anyway, make meaningful investments in small companies. eg. if a $10m LIC wants to invest 5% (ie. $500,000) in a $20m company they can. They will hold 2.5% of it. If a $200m LIC wanted to invest 5% into the same company, they would have to buy 50% the whole company, long before which time the price would have gone through the roof.
Also should be noted that liquidity actually relates to the value of companies shares that are traded over a period. Size may be a contributor, but other factors also apply. eg. where a high percentage of the shares are held by founding shareholders who have no interest in selling. Doesn't affect the size of the company but greatly reduces liquidity. Some companies also simply seem to have greater shareholder loyalty. eg. Forager's capitalisation is over $150m, but liquidity is really poor.
GC1 Price at posting:
83.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)