<< Tribeca Global Natural Resources(TGF) has an "active long short investment strategy that seeks to profit from from the inherent volatility in the Natural Resources Sector." Exposure to commodities is a popular investing trend (diversification, hard assets), but seeking active management is inevitably aloser's game. TGF hasn't disappointed, the underperformance has been immense! In this post, I focus on one of the manydownsides of the Closed End Fund (CEF) structure: their ability to raise capital below NTA and dilute existing shareholders. This can't happen with open end funds, including ETFs. TGF recently undertook a very dilutionary capital raising that Tribeca claimed was driven by the interests of shareholders! I provide details showing how damaging this really was, and why TGF's discount deserves to get wider. >>
TGF Price at posting:
$1.73 Sentiment: Sell Disclosure: Not Held
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