I actually bought TEK the other day at 20.5 cents, because it...

I actually bought TEK the other day at 20.5 cents, because it was at an all time low and 45% below the 36 c NTA. The NASDAQ had bounced but TEK hadn't,. It was an impulse buy as i was day 3 into Covid and had a lot of time to think in isolation. That night i did a lot of work on it, and realised just how the fee structure worked. The NTA had reviously been at 50 c, and is now at 36 c, and guess what, Alex gets to collect the 20% fees a second time as the NTA goes back towards 50 c with the market rebound.

Alex has a strong incentive to mark down the unlisted stuff in a non transparent manner as low as possible for June 30, eg get the NTA down to 34 cents or the lowest possible semi credible figure, That way he'll get to collect new fees off a 34 c or lower NTA base.

Anyway, when i realised what a con the whole thing was, i decided to sell the next morning, and sat on the offer at 21 cents. Alex bought me out. I made $400 on a $20 k investment in half a day but have missed all the uside to 24 cents, But the share price is a pure lottery as to whether Alex decides to buy you out or not.

There are no other genuine large buyers of the stock. No one else is dumb enough to be fooled by this con.

I sold because i don't like to invest with immoral people who are basically defrauding investors (no matter how large the discount is to NTA). He'll never pay a dividend etc, so you actually have no way of getting your money out of TEK other than selling to Alex. So he gets to buy in his personal account the same investments he buys for TEK at a 40% discount by buying TEK in the market. A very clever fraud.

Alex has no incentive to change the fee structure, because the bigger the discount TEK is to NTA the more money he makes from buying TEK in the market.