if they have any dough, they are reluctant to spend it because they wont be able to borrow any more.
if they don't have any dough, they are not buying back because they cant borrow any dough to buy back the shares with.
the alternative explanation is that they dont think the shares are worth the current market price, therefore it would not be value-enhancing to the fund to buy back shares for more than they are worth.
the alternative alternative explanation is that the managers of this fund now have A MASSIVE CONFLICT OF INTEREST. If you assume that the shares are indeed trading below what they are "worth", then it is indeed value enhancing to the fund to buy back some shares. HOWEVER, the reward for the managers lies in expanding the size of the fund, not shrinking it. This is generally true for all funds, and specifically true for this fund because that is how the "amended" deal by which Allco took over the Rubicon management business is structured. Fell and the other guy get more money next year if the rubicon business grows, not shrinks, and therefore they have a direct conflict in managing the fund's financial position correctly.
RAT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
