Ann: Assignment of Contango MicroCap Limited mandate, page-5

This is one of the saddest things I have read (in markets lately). Such a great manager, rich history, all gone. No more.

It makes no sense, none whatsover. What was the last 12 months about? I really want to comment on some of these things because I am completely perplexed. It simply makes no sense

Background to the transaction

>CTN is the longest running listed investment microcap company on the ASX. CFML has been the manager of CTN since its inception in 2004. During that time, CTN has outperformed the ASX Small Ordinaries Accumulation Index by 5.4% pa, returning 14.0% pa to CTN shareholders.

Um no I don't think it has. That's portfolio return, not shareholder return. Are they certain of this? And if so, why are they selling this off?


>Notwithstanding the exceptional shareholder returns over this extended period, the recent performance of the portfolio

SO MICROCAP IS THEIR ONLY UNDERPERFORMING FUND IS IT?


>has highlighted the advantages of a specialist fund manager dedicated to this sector of the market.

THIS IS ONE OF THE MOST BIZARRE THINGS COMMITTED TO ASX PAPER. WHO ON EARTH WROTE THIS, WHO APPROVED THIS. THEY ARE CONTANGO MICROCAP. THEY TOOK THE MONEY BACK FROM OC BECAUSE THEY WERE THE SPECIALIST MICROCAP MANAGER. THEY BOUGHT CAML YEARS AGO AS A SPECIALIST MANAGER. THEN IT WAS BOUGHT OUT AS A SPECIALIST MANAGER. NOW 6 MONTHS LATER THEY AREN'T? WHAT A COMPLETE ACKNOWLEDGEMENT OF FAILURE. UTTER, ABJECT FAILURE BY BOOBOO.



>Given CGA’s renewed focus on large and midcap companies,

RENEWED? SINCE WHEN? YOU WERE AN $80M FUND MANAGER A FEW MONTHS AGO. YOU JUST PAID OUT OC BECAUSE YOU WERE THE BEST. WHAT CHANGED?


>the Company is of the view that an alternative specialist manager would be better placed to manage the portfolio.

CGA DID, DIT IT. THATS NICE. WILL CTN SHAREHOLDERS HAVE A VOTE IN THIS? I GUESS CGA HAVE NO MICROCAP MANDATES LEFT SO THEY DONT HAVE TO TRY BE A MICROCAP MANAGER ANYMORE. I THINK THAT IS SAD


>Further, CGA had a limited opportunity to grow its broader microcap strategy as it had been approaching capacity for this strategy

HANG ON, THIS WAS EXACTLY WHY THE PREVIOUS CTN BOARD GAVE THE MONEY TO OC, AND THEN IT, OH, MY, I DON'T KNOW WHAT TO SAY. I AM SPEECHLESS. CAPACITY. $30M REMEMBER. BUT CAPACITY? THEN PAY A DIVIDEND OR DO A BUY BACK YOU DOPES. THIS IS , THERE ARE NO WORDS. YOU ARE A LISTED FUND MANAGER AT CAPACITY AND YOU SELL YOUR GOLDEN GOOSE  AND SHUT IT DOWN.

DUMBEST SENTENCE OF ALL TIME. CGA SHAREHOLDERS MUST BE WONDERING WHAT THEY BOUGHT AND WHICH CLOWNS ARE RUNNING THE SHOW

>Going forward, CGA will be able to manage and service its existing wholesale microcap strategies more effectively.

NO IT WON'T. ITS JUST SAID IN WRITING NAOS IS BETTER AND THEIR MONEY IS BETTER RUN BY A SPECIALIST MICROCAP MANAGER. SERIOUSLY, WHO WRITES THIS. THERE ARE NO WORDS


>The Company is confident that CTN shareholders will benefit from the appointment of NAOS to manage the portfolio,

LOST FOR WORDS. I DON'T RECALL EVER SEEING A FUND MANAGER SELL A FUND, TELL THE INVESTORS SOMEONE ELSE CAN DO BETTER, WHILE THEY ARE STILL RUNNING FUNDS, AND WHILE THEY ARE STILL RUNNING A FUND IN THE SAME SECTOR . MORE TO THE POINT, WHY DOES CGA EVEN NEED TO SAY THIS? ITS A MATTER FOR CTN BOARD. INCIDENTALLY, DOES CGA EVEN HAVE THE AUTHORITY TO ASSIGN THE PORTFOLIO TO ANOTHER MANAGER?


>a top tier manager with a great performance record,

OH PLEASE, TURN OFF THE LIGHTS AND SHUT CGA DOWN THIS IS ADMISSION OF FAILURE FROM TOP TO BOTTOM AND LEFT TO RIGHT. NO WONDER MARK KERR GOT OUT OF THIS SHIP OF FOOLS


>that is well positioned to provide high conviction exposure to the microcap market.

I HAVE TO KEEP LOOKING TO CHECK THIS. YEP, I AM READING A STATEMENT BY CGA. TELLING ME TO GO TO A COMPETITOR AND NOT THEM. BIZARRO


>CGA will work with CTN and NAOS to ensure a smooth transition.

BENEVOLENT


>CGA would like to thank the shareholders of CTN for the opportunity to manage the portfolio for 13 years.

SORRY, YOU ARE A FUND MANAGER WITH 15 MONTHS EXPERIENCE. YOU HAVE NOT BEEN MANAGING IT FOR 13 YEARS. BUT TURN OFF THE LIGHTS ANYWAY


SUMMARY: CGA SHAREHOLDERS MUST BE WONDERING WHAT ON EARTH THEY HAVE BEEN SOLD.  NEVER MIND WHAT THEY ARE LEFT HOLDING, AND HOW LONG BEFORE THAT CARCASS IS LIQUIDATED