Ann: Weekly NTA Update, page-7

@MarkHGO...I don’t think there are many LICs trading at a premium to NTA these days, and some of the Wilson Funds May be the exception. I referred to SEC and started accumulating at $1.29 when the discount went to about 35%. That was plainly ridiculous when the SEC team emphasised that they were value investors and would not join the merry go round with those that were short time growth investors.
Their thesis and my confidence in them has been rewarded with many of their value stocks outperforming and the SP going to about $1.53-$1.55. The Lowest NTA figure I think is over $1.90. They predict that many of their holdings have much more to go. They seem to be fairly conservative.
The other LIC I referred to was CDM that, for the last 1-2 years had been very poorly managed by Karl Seigerling and his team. I had lost so much that I didn’t even want to mention his name, let alone buy more CDM. I was then looking at shares to buy for my wife, and saw that the fund had been completely revamped with a mix of good Ozzie and US stocks and that the fund was way under NTA. Heartened by the revamp and the quality portfolio, I bought back in at .58. The discount is still approx 25-30%. At one stage during March April, the SP of CDM was LESS than the cash at bank approx 40 cents and 60% of the fund was in cash. That meant buying the cash at bank for less than its value, and getting the 40% of the remaining portfolio for free. You talk about some LICs deserving a re-rating ? That my friend can be done by you by seeing this discrepancy, realising that it can’t go on forever, and being one of those who are ahead of their peers by wanting to see a gradual increase in value in quality shares, and not expecting to get rich overnight......... but richer in the long term.
DYOR and Good Luck.