questions to be answered!, page-9

I did buy in and have unrealised losses. The concept as explained to me was they take a view. At the time I bought in the view was bull so the long portfolio was greater than the stocks they shorted. That gap has shrunk , i think since then. They explained it as follows:

They buy a portfolio that they believe will do well and go long and then look to a portfolio that they think will do badly and short that. that way they have over the past - via great stock selection , been able to have huge out-performances and pay great dividends.

From about August last year it started going pear shaped.

Its only a buy if they can get the mix right again. The overseas mandate that they have now put in place worries me as you now add currency risk into the equation. I think some sellers may well be uncomfortable with this move.

Their other stock WMK has a balance and cannot invest in overseas stocks so they buy a long portfolio and match that to a short portfolio so the investment is market neutral. Both now trade around NAV.

I hold but I am not buying anymore unless they get back to their winning game. I dont see it as a buying opportunity just a bad run from management.