Is Evans Dixon Australia's version of Stratton Oakmont?Maybe not...

Is Evans Dixon Australia's version of Stratton Oakmont?
Maybe not to that extreme but it but it looks like Evans Dixon certainly did a nice job is convincing their clients to invest in schemes operated by Evans Dixon, with fee structures that one can say politely at best, are very generous in generating profits to ED1, regardless of performance.

Look at US Masters Residential Fund (Ticker URF), a very high fee generating vehicle created by Evans Dixon and with most of its shareholders being Evans Dixon (unhappy?) clients. The icing on the cake goes to the various notes and convertible preference shares that provide, a bit more safety, but certainly more fees for Evans Dixon.

A quick google search on US Masters Residential Fund also shows a number of journalists also seems to be on to this.

Fools Gold:
A more cynical investor could look then to invest in Evans Dixon directly in the hope of participating in that lucrative pot of gold.
However the risk here, as pointed out in the initial IPO, is that Evans Dixon's profitability is heavy tied to the continued extraction of exorbitant fees.
If these fees dry up, their will be a significant hit to Evans Dixon's profit.

Recently ED1 has elected to forego some of the fees on a voluntary basis, this is currently being felt in the P&L.

I think the market is catching onto this "boiler room" set up, hence the rapid southerly direction of both URF and ED1's share price. There are only so many clients that can be burnt before clients become wary and the pool shrinks.