Don't try to work out why these price anomalies occur - you will...

Don't try to work out why these price anomalies occur - you will lose focus on reality doing that with LICs. IMO the not so occasional huge discounts and premiums to NTA are caused by a number of the LIC investors relying purely on the market trend or the percentages on monthly reports as their thesis for investment. Now I don't want any HC readers getting their undies in a knot because I have said I that because most of the HC readers and posters are here because they are doing their homework before laying out their hard earned. I go to a few LIC investors roadshows and annual meetings and find that in talking to the few that I have met I find that they rely heavily on the expertise and the credibility of the investment manager. Of course all investors should take those factors into account too but they should also look carefully at the makeup of the portfolio and the larger holdings individually as well as take a critical look at the long term graph of the SP price which will reflect more accurately where some shareholders may have been well out of pocket for a long period. SNC is not devoid of such past problems (eg look at it from a $1 IPO holders point of view). So its all about where you entered with some all round due diligence. Those that don't tend to push the price around in an unusual pattern occasionally.