I took a small position today when it hit 84c. The selling seems to be driven more by poor long-term holders who just cannot take any more pain than any massive deterioration in NTA (although there has clearly been a significant drop).
I was in and out briefly last year on a trade and LSF is not one I am completely over - so I dont claim to have any answers. BUT - I was in the AMP China fund (AGF) which eventually attracted 2 activist shareholders who got the fund wound up. AGF was really good to me - but that's largely because I was buying in and out rather than holding. When they wound it up, it was a real bonus as the discount to NTA disappeared.
With LSF - against the current NTA - winding up could be a viable option to preserve capital and align shareholders' position with NTA. Not saying it's going to happen - but if there is not a turnaround in performance it is an option.
We've come off an amazing multi-year bull run where the fund lost money, into a savage crash where the fund appears to be still losing money. Maybe now is simply not a great time for a large leveraged fund (if there ever is). There is still a solid buffer between NTA and stock price and one way to exploit it is to wind the fund up for the benefit of shareholders.
Just floating it out there...
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Last
$2.87 |
Change
-0.030(1.03%) |
Mkt cap ! $1.805B | |||
| Open | High | Low | Value | Volume |
| $2.92 | $2.96 | $2.87 | $2.334M | 798.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 24697 | $2.87 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.91 | 39358 | 2 |
View Market Depth
| Last trade - 16.10pm 01/07/2025 (20 minute delay) ? |
| LSF (ASX) Chart |