llee; Okay, firstly I apologise for trying to second guess how you came up with your figures. We obviously have different ways of looking at performance. I use NTAs because there is a requirement on how they are to be calculated. I use the after tax version on the basis that no portfolio holding is kept forever and eventually tax will have to be paid. Portfolio performance reporting varies greatly from LIC to LIC depending on what the manager chooses to include. I don't gross up dividends because I don't have a SMSF and so it wouldn't represent my situation. I agree that for some grossing up may be a valid. Finally, since ALF made the decision to go long / short, I (unlike many) have only compared ALF to the cash rate, which is what Watermark do for WMK. If nothing else, our discussions show how figures can be used to reach two opposing conclusions!
Funnily enough, if I didn't already own ALF (part go back to the 2003 IPO as Wilson Leaders, part to late 2008) I would be looking at buying now. Other than what is was at times in 08/09, the discount is as large as it gets. Buying would, however, be on the basis that at some point in the future JB will have a good short term run causing the discount to decline. It will not be on the basis that I expect his stock picking ability to improve in the medium to long term.
ALF Price at posting:
91.0¢ Sentiment: Hold Disclosure: Held
