Offshoreinvest
I started to write "Please explain" but that phrase now clangs discordantly in one's ears with associations I would rather give a wide berth to.
Please elaborate on what you think is wrong with CTN's investment management mandate with OCFM?
How do you envisage that losses could arise, apart from the obvious one of poor stock picking performance by OCFM?
Bear in mind that the loss that is fresh in my mind is the CTN performance through February.
The Portfolio NTA after tax was down 5.94%
(That drop was not fully reflected in the share price, which after allowing for the 2.7 cent dividend, fell by circa 4.4%
It was the height of brass neck worthy of Trump for certain people to have laid that share price fall in that period at the door of the previous directors.The previous directors were not the stock pickers.)
Meanwhile the nearest thing to a benchmark, the Small Ords Accumulation index, went up 1.31% through February.
So, relative to the benchmark, the CTN portfolio went backwards 7.25% in February.
As Hoges would say, That's a loss.
(The retreat was even worse on the basis of the NTA before tax)
It would be nice if that was just an unfortunate short term fluctuation, but there is no sign that that is the case.
(I am hoping without great confidence that a share price of 0.985 was overdone as a result of people trying to vacate the stock too quickly but we are a long way away from the price at the start of February. [$1.085])
I have no incentive to talk down stocks that I own.
But in the case of CTN, it makes little difference what anyone says here or anywhere else, because Mr Market does a pretty good job of adjusting the share price to match the underlying portfolio.
The share price rides the investment manager's stock picks, virtually bareback.
Consistent performance may eventually change the discount to NTA, but only slowly.
So, what potential loss arising from the CTN funds allocation to OCFM have you got in mind?
Or is your mention of that possibility just a straw man to lay the ground work for what I speculated might happen?
That is that CTN shareholders' funds will be applied to bring an early end to the agreement with OCFM, not in reality for CTN shareholders' benefit, but rather for the ultimate benefit of CGA.
One more thing, I respectfully suggest that if you want to have credibility here on the CTN page, you ought to declare what, if any, relationship or interest you have with CGA.
The commercial relationship between CTN and CGA makes this a special case.
If your holding in CTN is dwarfed by a holding in CGA, that puts your comments about CTN in quite a different light.
You seem to be "in the know" and advocating their corner so, what, if any, is your relationship or interests in CGA?
Cheers
These are my opinions only. Nothing that I have written here should be construed as disparagement of any of the parties or entities involved. For all I know, all of the parties and entities may be completely convinced of the correctness of their actions and be acting from the highest possible motives with all due skill and care in accord with their various responsibilities and obligations. Any figures and facts are mentioned in good faith but I accept no responsibility for their accuracy.
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