Firstly, I would like to thank Andrew for arranging the Bailador talk today. I am loving all these company presentations - its a world that I previously havent had insight into.

As has already been pointed out, this is to a fair degree a play on the expertise and track record of management. However, similar observations can be made for many businesses...

Anyway, since I bought Bailador IRL a few months ago I see that a discounted NTA has actually been to my advantage. Since I am intending to be a long term investor my thesis triggers to sell are:

• Loss of confidence in management (e.g. they have a few poor years, if they change their focus) 
• Exiting of key shareholders (e.g. Soul Patt’s, management, etc)
• NTA returns <10% p.a over a three year period.

I dont really expect the NTA discount to close unless they start paying regular substantive dividends and this seems unlikely due to the type of business they invest in. Share buy backs might give a temporary boost, but would likely fade away over time. Therefore, I actually expect a discounted NTA will be a permanent feature. Noting that I only bought in recently, as long as the NTA discount doesnt dramatically widen I am expecting their underlying outperformance will over time drag up the share price.

Of course - happy to hear a counter view.