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Active Member Straws
#Bull Case
Added 4 months ago

The fee structure here is a bit rude, but we don’t have to worry about the high watermark being hit for awhile in terms of performance fees!

The discount now suggests to me finally a bit of capitulation. The poor start to the fund also means it carries plenty of tax losses so gains from here are more tax effective.

As to their recent performance? Well it is shocking yes so why buy? They seem to be heavy on the thematic of long value and short some of the more fancied growth / momentum plays. Clearly this has been the wrong way to be tilted. Are they dud managers or has the market just been a bit crazy in terms of stocks like Tesla, which they have shorted I believe? Time will tell.

This IPO was heavily marketed and I think the large discount now is in part a fallout from newer investors coming in who are not as sophisticated as others. As they sell the stock down now to the low 80s because they are angry, they may be bailing at the wrong time. As to what the “live” discount might be we are flying a bit blind given all the volatility. But the stock I got filled on personally today I am assuming more than a 25% discount on the pre tax measure, obviously greater post tax.

I see value as I write this post around 85. The way this market is though, by the time I finish this, take a toilet break, have a coffee, the market may have shifted by 10% either way! 

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