25/08

I'm out. Good arbitrage trade but didn't really think waiting for the scheme to be implemented was worth the uncertainty. There was also no viable way to hedge the risk. Onto the next one.

09/08

Things are tracking well and I'm faced with the dilemma of whether to offload my shares now or ride this out until the implementation of the scheme in early October. As it currently stands, AEG is somewhere around a 3-6% discount to NTA and WLE is trading at a premium on the back of some very impressive recent performance.

The main risks are now the NTA of AEG decreasing due to poor performance or WLE beginning to trade at a discount to NTA for whatever reason. I also need to factor in that there will likely be a heap of arbitragers (including me) dumping WLE on market once the scheme is implemented, adding some further uncertainty to exactly what returns are likely to be achieved by holding for another two months.

I'm going to start taking profits when the discount is in the 3-4% range. I’m not comfortable relying on WLE trading at or above NTA in order to make the trade work. 

14/6

As predicted, point 2 below has come to fruition although it was WLE as opposed to WAR or WAM.

On balance I'd say this looks ok for shareholders however risks still remain. WLE could trade at a discount to NTA or portfolio performance of AEG could continue to be poor (it could also improve if they found a replacement monkey).

On balance I'm happy with how I'm positioned.

02/06

A transaction will be announced within the fortnight that will allow shareholders to exit AEG somewhere around NTA (currently 94c). It has been specified that there is a counterparty and negotiations are in the final stages.

Seems the discount to NTA is still over 10%which tells me the market is uncomfortable taking on the risk from the portfolio between now and whenever the transaction is implemented.

I'd speculate that:

1) The fund might merge with one of Bennelong's unlisted long/short funds

2) WAM/WAR might be sniffing around - although I haven't seen them pop up as substantial holders

3) Plans to merge into another fund

It doesn't appear that a complete wind down is on the cards, which is fine as long as I can get my money at close to NTA.

Happy to buy at current levels and take on the risk. Odds are in my favour.

10/05

These guys have been hopeless lately. NTA now at $0.91 with MTD performance of -4.2%. Poor stock selection coupled with high gross market exposure has seen this vehicle perform like an absolute dog. The only acceptable outcome of the strategic review would be to wrap this one up and call it a day. Investors do not deploy their hard earned money into a long short fund with the expectation that it will actually perform worse during a market downturn.

Stop letting the work experience kid design the portfolio, liquidate the portfolio and return cash to shareholders.

01/03/22

Steady NTA and discount is now well over 10% with a return of capital likely. buying at current prices.

22/2/22 *UPDATE* Sweet baby jesus update this morning is grim. NTA of $0.96 and MTD performance of -11% ....... honestly just sit a monkey in front of bloomberg terminal and you'd get a better result.

Wind up has to be impending now, still happy to average in.

21/2/22

Currently trading at a 10% Discount to NTA and capital management initiatives (such as return of capital) have been flagged. To me this seems an obvious place to park spare cash. There is the risk of the portfolio continuing to perform poorly but I'm willing to wear it because there's minimal market risk (the fund is market neutral).

will average in at a 10% discount.