Originally Posted by
Roger
Voltaire - I thought I could rely on BRM to manage the portfolio in a prudent, careful and well diversified manner. I fail to see how taking such a large holding in an extremly risky drug development firm is consistent with good prudential management. Perhaps its being managed with the primary focus of trying to substaintially outperform the market in the hope of the manager looking to earn performancee fees, capitalise a share of the profits for the managers and if it all goes wrong what the heck, the shareholders wear all the risk. It looks like recklessness investment to me.
I believe the vast majority of investors would prefer to see a far more diversfied investment base with no more than 5 % in any one stock, preferrably no more than 3%. Of course that would involve a lot more work and research for the Barramundi investment team...
I remain of the view that given the material effect on the SP warrant holders shoudl have been informed that Pramaxis was in the trading halt especially given that a yes or no has had such a dramatic effect on the SP, clearly a case of substaintial pending uncertainty where warrant holders would normally have been best to sit on their hands and not excercise, (if the company had been reasonable enough to inform them) Good upside, limited downside for warrant holders = do nothing and possibly excercise later, I am sure you would agree. Of course its in Barramundi's interests for warrant holders to excercise, that almost goes without saying so there was a vested interest on their part not to highlight the risk.
I have taken my concerns up with the company.