Doesn't seem to be much interest in the CD Funds. I've patiently tried to "bottom draw" my investments in CD2 and CD3 given the deep discounts meant taking a massive haircut but have been exiting recently as:
- I needed to free up cash to invest elsewhere.
- Recent returns from the CD funds have been a slow bleed especially as they get long in the tooth.
- I have too much USD exposure carrying them too and hedging costs (inc opportunity costs of having the hedging money in fixed income instead) were exorbitant. Unlike many USD investments, it's too risky carrying them totally unhedged as they don't gain in value reliably in risk-on (AUD strength) environments.
- Decomposing the returns for CD2 unveiled a grim reality.
On my site I maintain a post on the CD Funds which I am happy to discuss in this thread: > CD1, CD2, CD3 - CD Private Equity Funds - Cheat Sheet
Ann: Quarterly investment update - September 2024, page-3
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