Agreed, seven years is a long time to under perform. But, the...

Agreed, seven years is a long time to under perform. But, the under performance on the seven year time frame is only due to the terrible under performance of the past three years, which has dragged it down. It doesn't mean they have under performed every year for the past seven. The past three years of terrible performance is therefore is statistically more likely to be a fluke than their out performance in the approximately 12 years from 2004 - 2016. It's harder to fluke 12 years than 3.

Take a look at the March 2016 NTA/ performance summary .ALF out performed the All Ords by 26%, 7.7%,6.2%, 8.8% and 6% over the 1year, 3year, 5year, 7year and 12 year time frame. I think it is more likely that the recent under performance is more influence by luck and less by skill than their long term out performance. So, If i believe that their long term performance is a better indicator of skill and the stock it's trading at a 20% discount and management are actively trying to close the discount and are incentivized to do so then I think you are better off buying than selling.