Ann: Weekly Estimate of Performance and Market Wrap, page-3

Don't rush to sell based on price action - if selling out because you don't actually want commodity exposure after all then at least get a decent price relative to the portfolio's NTA.

Commodities are very volatile (spot prices rule and current coronavirus impact will depress short-term prices. Medium/long-term diversification, inflation-hedging and current valuations (e.g. Apple being worth more than the entire US energy sector) are all strong reasons to have the exposure.

10 Feb 2020 Price = 1.76
10 Feb 2020 NTA ~ $2.30
DIscount is an all time high of 23%

Even if NTA dropped to $2.20 at $1.76 this is a discount of 20%.

Note that 35% of portfolio is private credit which pays a circa ~10% income return so you need to discount the equity-only weekly returns appropriately.

Also the AUD dropped around 4.5% in Jan (and to current day) so this may provide ballast to unhedged exposure.

Most of their overseas stocks bounced last night and their ASX energy stocks should bounce off recent lows today.

Hopefully TGF at least considers a buyback given discount level as this could be very NTA accretive if done at scale. There are also capital management options to add shares and liquidity again as I've discussed in OPH thread.