VGI’s unlisted hedge fund lost 3 per cent last year, the first calendar year in the red.
The hedge fund’s portfolio is replicated in one of two listed investment companies VGI manages, and the poor stretch of returns has widened the discount at which the LIC's shares trade compared to the value of its underlying assets.
The discount has attracted activists David Kingston, a former M&A banker with Rothschild, and fellow investor Malcolm McComas, who have pushed VGI to change the LIC’s structure into an investment vehicle that would allow investors to depart without incurring the discount.“After several extensions, the shotgun marriage has been consummated,” said Mr Kingston, adding that he would continue to press for change following the merger.
“We call on Phil King and the pending new directors of the merged entity to urgently rectify the wretched returns VGI and Mr Luciano have delivered to the LIC investors,” he said.
VG1 Price at posting:
$1.80 Sentiment: Hold Disclosure: Held
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