Top member reports
No meetings
Consensus community valuation
The consensus valuation is for members only and has been removed from this chart. Click for membership options.
Contributing Members
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Bull Case
Added 3 years ago

Hi Pat, Hi all. I have both RF1 & LSF in RL.

To have a go at your question 'The bigger question was why was it trading at such a big premium? Why pay a 18% premium to NTA?' I'd guess because the track record is Bradmanesque - folk will pay for outperformance. As for LSF, it was a bit of a hate sale for a brief golden window following early underperformance - that worm has turned. My prediction is that the capital raise will be very well supported. I'll apply for extras and I expect to get very little there. 

Read More
#About RF1
Last edited 4 years ago

03-Oct-2020:  About RF1:  Regal Funds Management's LIC (Regal Investment Fund, RF1) is one I came across today while listening to Friday's (yesterday's) "The Call" on Ausbiz - see here:

I also noted earlier today that Regal Funds Management were one of 5 fundies that were listed as substantial shareholders of Enero Group (EGG).  [that was in my straw titled "Broker/Analyst Views" for EGG - see here.]

While Rudi and Claude were both negative on RF1 on "The Call" yesterday, much of that has to do with the fact that neither of them are interested in holding LICs themselves, so I would suggest they are not the best two people to ask for an opinion on any individual LIC (listed investment company) - including RF1.

RF1 have had a brilliant year - you can view their chart here:

They've recovered all of their March/April losses and then powered beyond their previous highs.  Their performance numbers are VERY impressive:

1 month: +10.49%,  3 months: +42.49%, YTD: +31.29%, 12 months: +34.08%, since inception: +35.51% p.a.

And they are still trading at a decent discount to their NTA.  At August 31st, their NAV/NTA was $3.37, and their SP (share price) was $2.98, so they were trading at a 11.6% discount to their NTA.  They call it their NAV (net asset value) but for a LIC the NAV is the NTA (net tangible assets).  NAV and NTA are interchangeable terms.  

That discount has probably narrowed, as RF1 is now trading at $3.13 and the market was down in September.  However, RF1 has been outperforming the market in both up and down months, so I'm confident there is still a discount in their share price.  We'll get a better idea of the extent of that discount when they release their September report, which is due around the 11th to 14th October based on their report timing in previous months.

Another interesting thing about RF1 is that while they do use a number of different investment strategies, including shorting some companies, they have long positions in some favourites - like ZIP, TNT and PBH, and they also hold companies that are regularly discussed here - like 4DX, DEG and BTH - see here:


I'm not yet an RF1 shareholder, but they're now on my watchlist.

Read More