I found out the other day one of MMA's investee companies, CGAM, holds physical gold. It works out to be equivalent to about only 0.5% of MMA's NTA but it's worrying. People who have invested in MMA are looking for value based plays. Buying gold, one of the most speculative assets around, at prices at historical highs does not seem like an obvious value play. People who seek out value investments typically don't like too much risk, and it turns out they have exposure to one of the riskiest bets a fund manager can make right now. It is not just this investment but another one of MMA's investment was a junior explorer with no activities other than exploration, with their main exploration target being looking for gas off the coast of Tanzania.
If I were running MMA I would not have let this happen. If I wasn't sitting on a loss on my MMA shares I'd cut and run and put my money in a REAL value based manager. I can take losses, I can take poor performance, but I can't stand someone tossing my money around in a casino for me.
MMA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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