Article in AFR 30/01/2018, page-19

MisterS I agree whole heartedly agree with your reasoned, rational and balanced post here but respectfully disagree with your closing words. I say this in the context of knowing a number of long-term 'long only' small cap fund managers over a number of decades.

If an insto feels like they had things misrepresented to them by management, or worse there is a view of also potential sanctions by regulators, they tend to take their medicine and head of the exit regardless of price. Yes this can lead to stocks becoming 'oversold' but in my experience it is what it is.

Regal Funds Management has one of the most aggressive entry and exit MO's in the Aussie insto market - carefully watch for how they behave and react here.

The way I see it with FIL is that the portfolio manager may not just have lost his/her annual bonus, and depending on their age/experience and track record within FIL, they may require to dust off his/her CV.

Internal FIL legal counsel will be assessing the situation and options of which (and its my hypothesizing) I see 2 alternative paths that may be taken by FIL and neither IMO will generate a good result for GSW shareholders. FIL's considerations will be also driven by 'brand/reputation' management and lets face it whether GSW goes to $10.00 or 10c its not going to move the dial on their overall redemption risk.

Regal Funds (long largely at 25c) and FIL (long at $4.00) own ~30m GSW shares - not an inconsequential amount !

Who knows about IFM. All I will say there if this fund is run by the same Neil Carter who used to be a Mac Bank running small caps for many years - well DYOR !