Ann: Change in substantial holding from TAU , page-3

Corp,

No, it’s not another fund.

It's the same fund (the one that became a substantial shareholder on 6 March), simply increasing its stake, namely the Lanyon Australia Value Fund.

Trustees Australia (TAU) is merely the Responsible Entity for Lanyon.

You would be well served doing a bit of research on Lanyon
(http://www.lanyonam.com/home/).

To save you some time, I'll summarise Lanyon for you:

Run by Eric Metanomski, who is a prolific and judicious deep value investor with impeccable track record, Lanyon:

- is a high conviction, benchmark-unaware investment fund (i.e., it has a concentrated portfoio, meaning when it sees an investment it likes it buys it aggressively, and does not own stocks simply because they are components of a particular equity index

- invests while being "fully prepared for adverse scenarios to unfold, with avoiding and managing risk is an obsession with them

- looks for a large margin of safety between price and underlying value.

- aims to invest in securities trading at wide discounts to underlying value with downside protected by tangible asset backing or strong free cash flow generation.

- investments in their portfolio tend to be more complex, less liquid, and less widely analysed companies.

- often, but not always, invests in the small and mid cap area of the market where such opportunities are more prevalent.

- invests in situations that are typically out of favour or ignored and can be experiencing temporary duress.

- invests in opportunities that often have strong catalysts for the realisation of underlying value.
“When we find great bargains, we buy them. We do not speculate, we do not use derivatives. We are long-only investors.”

Conversely, the seller of the stock was Hunter Hall who, judging by some acutely adverse performance in recent years, is almost certainly suffering from redemptions from its funds for which it has to increase liquidity.
For more information on Hunter Hall’s performance, visit (http://www.hunterhall.com.au/managed_funds_VGT.php#overview), (http://www.hunterhall.com.au/managed_funds_AVT.php#overview) and (http://www.hunterhall.com.au/managed_funds_GET.php#overview).

Normally I far prefer to focus on the underlying business when it comes to investing, and I usually care very little about who is buying or selling any particular share (especially management), but in this instance the case of “Discerning-Buyer-and-Forced-Seller” warrants some special mention.

I suspect without the Hunter Hall overhang, the stock price would be a lot higher today.

But it matters not...it is merely an issue of timing.


Cam