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#Bull Case
Added 2 months ago

The management are highly competent, and with the main VGI fund, the management put their money where thei mouth is, owning a massive portion of the company. Although the Asian market may be seen as a riskier alternative to the western markets, as the company stated, they are only investing in countries with a highly stable government and economy. Along with this, the Asian countries seem to be recovering from the coronavirus better than others, and with the Chinese economy getting rebooted, it should mean that they will be able to start deploying cash with cheap companies. I believe in the medium term (6-24 months) this will be a great stock to own.

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#Business Model/Strategy
Added 4 months ago

Long short funds do less worse during down months... with coronavirus likely to impact markets over the next months to year(s) this provides a nice hedge. See below from recent vgi presentation 

 

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#Bull Case
Added 4 months ago

Coronavirus significantly impacting asian shares (and global)... but probably short term. This may present an amazing opportunity for an asian focused lic that is still over 76% cash and 90% of that is basically in USD and the rest in yen! The manager is slow to invest which is fortuitous given they will hopefully select some quality stocks at cheaper prices.
 

but even without that - At present you are also basically just buying us dollars and yen at a discount! in itself this is a reasonable investment whilst the coronavirus scare is happening.


Current nta is 2.54 but stock price is 2.27! Given the us dollar and yen will go up as safe havens (esp as people leave stocks) the portfolio will do well even if they dont invest.

 

further benefits are from them being a long/short fund. 

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