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26/01/15
18:31
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Originally posted by joewolf
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I did buy in and have unrealised losses. The concept as explained to me was they take a view. At the time I bought in the view was bull so the long portfolio was greater than the stocks they shorted. That gap has shrunk , i think since then. They explained it as follows:
They buy a portfolio that they believe will do well and go long and then look to a portfolio that they think will do badly and short that. that way they have over the past - via great stock selection , been able to have huge out-performances and pay great dividends.
From about August last year it started going pear shaped.
Its only a buy if they can get the mix right again. The overseas mandate that they have now put in place worries me as you now add currency risk into the equation. I think some sellers may well be uncomfortable with this move.
Their other stock WMK has a balance and cannot invest in overseas stocks so they buy a long portfolio and match that to a short portfolio so the investment is market neutral. Both now trade around NAV.
I hold but I am not buying anymore unless they get back to their winning game. I dont see it as a buying opportunity just a bad run from management.
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nice take on the situation, but i am on the buy side atm. with a long term bias.we still have wilson and abernathy on the board and unless there is a 'surprise' sellers notice it has upside better than the banks,, they have a a lot of cash to cover the risks ,LIKE A LOT OF THE lics ATM........divvvy may drop but will still beat the banks I.M.O.