A slight head wind, page-5

Dear Bob/Phillip/No,

I have just bought small parcels of both ALF and WAM.  As part of my investment decision (for ALF), I read this commentary....

"Every now and then we will be on the wrong side of these transactions. The first time we had one of
our shorts bid for was under similar circumstances when the Japanese brewer Kirin bid $6.5 billion
for Lion Nathan in April 2009. That was a terrible transaction with Kirin overpaying and the business
has struggled ever since. In our short portfolio, we can be exposed to this irrational behaviour.
Sadly, the Toll profit result also announced on the day of the bid was very disappointing and the
shares would have otherwise been a lot weaker."

extracted from "Investment Update and NTA Report 28 February 2015".

My simple logic was that ALF price in mid March 2015 has already priced in the impact of the short (TOL).  

I am hoping that ALF was also sort on ACR and SRX.

If we consider that P/E ratios are stretched (as I do) on the "P" side of the equation, I am investing in LICs for "insurance" purposes.  However there is the risk that the bubbles continue and the shorts are another black swan.

Looking forward to reading comments from yourselves, whom appear to have a good deal of experience with LICs.

Cheers to all.