My thoughts exactly OpexI bought on listing and was in for the...

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sloanrunner

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26/05/23

12:17

Post #: 67979657
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Originally posted by Opex: ↑

I invested in this when it first listed. The opening year was fantastic and the returns were quite strong and was trading at a premium to the NTA. The well publicized 'tech wreck' wrong footed them as you indicated and confidence in the strategy evaporated. Even with the risk overlays they put in place afterwards we are still struggling to get back to anywhere near the NTA. Once confidence goes it's hard to earn it back. The old CIO's flippant golf/sport posts while the house was on fire didn't help.

The market now seems to be wary of the 12 month hold/high conviction strategy for the conference portfolio. I agree that it's probably viewed as an 'all care/ no responsibility' exercise given recent performance. The core portfolio doesn't get a lot of attention while it churns away in the background.

On the flip side, it's a great dividend stream with significant accumulated franking credits and profit reserve. If you buy today you are almost guaranteed a near 6% annual franked return. There is also a big capital upside on the NTA alone, with further possible gains from the conference picks outperforming.

The philanthropic goals with donations to medical research instead of performance/management fees are quite worthy, but with my cold shareholder hat on I think there should be some serious discussions on liquidating the fund if it can't get back to trading very close to the NTA in the next 12-18 months.

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My thoughts exactly Opex
I bought on listing and was in for the long term but decided to take profit when the share price got too far ahead of NTA
I fully intended to buy back in when the the premium narrowed or moved to a discount but same as you "The old CIO's flippant golf/sport posts while the house was on fire " didn't instill confidence and as a result I am still on the sidelines looking in.
I like the philanthropic goals, the change in how the fund is managed and the discount so maybe it's time to dip the toes in again

HM1 Price at posting: $2.19 Sentiment: None Disclosure: Not Held
4 Upvote

0 Great analysis

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