I couldn't have said it any better... To be honest, and as you mentioned, when they went ahead with the dividend reinvestment plan - despite the share price being at a discount - I knew they had lost the plot. You couldn't get a bigger F U to shareholders.
The sad thing is they stayed aligned to shareholders for so long. Yet, something has clearly changed as far as their mindset is concerned. On top of that you have some really strange hires across the board.
The opportunities fund is pretty much the only saving grace. OPH, just like every LIC/LIT on the ASX is a floundering mess. The only way they ever stay at NAV is (a) you have a bunch of refundable franking credit worshippers (Wilson) or you shoot the lights out (L1). Even LSF just manages to keep par, and it's pretty much the leading hedge fund in the whole country.
The high conviction fund has always been the ugly sibling of the opportunities fund anyway. The only reason people invested when it floated was due to the misguided belief it would follow suit with the opportunities fund.
Considering OPH performance, the only thing that shocks me is the fact the discount isn't higher. I guess sooner or later they will have to address the big issues...
Fund managers have a habit of avoiding the tough questions.
Just another reason to ditch the suits and go passive. Pay a fraction and win over 80% of the time. Pretty compelling odds.
OPH Price at posting:
$2.48 Sentiment: None Disclosure: Held
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