Ann: Preliminary Final Report, page-5

This has so far been the worse investment i’ve ever made. IMO I think Angus Geddes’ insight into the market is often spot-on and he gets a lot of his calls right. My mistake was thinking that FPC would be an ideal way to better capitalise on this.

However the reality is that the LIC structure works best for the managers, as they do not have liquidity worries when investors want to sell out. But it really sucks for investors, as they rarely get a chance to sell at NTA and usually have to sell at a loss. FPC’s problem is that their performance has been pretty dismal and very inconsistent from month to month, and this has damaged their credibility. In addition, a LIC with a market cap of only $45m is WAY too small to ensure liquidity with enough buyers wanting to buy. The only way for FPC to close the gap between the share price and the NTA is get 5-6 months of consistently positive returns, beat its benchmark and maybe then the market will start to take notice of FPC and get more potential buyers interested.

They’ve had 2 good months in a row, and I personally think they now have the right mix of investments for the current environment, so let’s hope the next 3-4 months continue to be positive. Then we may see better performance and the NTA gap begin to tighten a bit.