Below is part of the article by Daryl Wilson of Affluence Funds...

Below is part of the article by Daryl Wilson of Affluence Funds in yesterday's Livewire. The whole article is well worth a read and focuses on three unloved LIC's - LSF, NSC and ALF:

"So why do we think ALF is a good buy now? Firstly, we don’t believe it will get drastically worse from here. As the vehicle is currently market neutral, it is unlikely to suffer a large drawdown in a market fall. Of course, it could certainly continue to make losses, as its 1 year performance of -4.5% shows. It is also very possible for the discount to NTA to blow out even further. But in our opinion, the larger the discount gets from here, the greater the chance of a shareholder revolt. Given the 5 year returns, pressure is continuing to build for a resolution. Any more losses to shareholders from here, in our opinion, increases the chance of a WMK/WGF type transaction occurring."

I like his take on the subject, although I took a similar view with ALF some months ago and ended up losing on the 50% that I recently sold (!).