Yes, high yield LICs (like those offered by WAM) seem to stay close, if not exceed their NTA. Although, this seems to be largely due to their appeal to retirees... LSF on the other hand is not exactly a vanilla WAM styled LIC... so I am not sure what a high yield would do. I can only assume there would be a lot of investors looking for capital appreciation, and for the manager to put earnings to work, rather than simply paying out the bulk of earnings. A nice balance seems to be preferable and would serve both purposes. A DRP is always a must - and special discounts for participating, like those offered by Magellan seem to work well.
What a turn around for LSF. Having sold out at 1.80 - I should have stayed the course a little longer.
The pesky 2 dollar barrier will be broken if this kind of turn around continues.
Definitely not for the faint heart old LSF.
On a side note...
The more I read it seems like all hedge funds in Australia are almost giving up on shorting. All the recent commentary, even from the master himself Phil King - seems to suggest it's just too hard in the current market.
The slight redirection from ridiculously priced high growth stocks (Afterpay stocks) to value seems to be a long awaited change. I wonder how long it will last though, before everyone jumps back on the high growth bandwagon...
LSF Price at posting:
$1.98 Sentiment: None Disclosure: Not Held
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