sharetrader
Results 1 to 2 of 2
  1. #1
    Senior Member
    Join Date
    Jun 2004
    Location
    , , .
    Posts
    1,045

    Default Absolute Return Funds

    An absolute return fund is typically a type of hedge fund aiming to perform positively independent of market direction (up, down, sideways).

    These funds contrast the relative returns of long or short equity funds which aim to perform in only one type of market.

    Celsius (CEI) was an example of a single strategy hedge fund. They effectively put an option "collar" on large cap dividend stocks - took a bit of leverage to increase the margin they were making on these dividend returns. The Trustee pulled the plug on them and they have paid out NTA (they were trading at a substantial discount to NTA).

    Searching for a new home for these funds ... I found a very interesting ASX listed hedge fund recovery situation. (Trading at 60% of NTA; returning 15% on capital; paying dividends at 15% of trading price). Signature Capital Investments (SGI.ASX). This fund has a "fund of funds" strategy.

    Does anyone have any beaten down hedge funds, with recovery prospects, that they follow? (ASX or NZxX - these are really income producing investments - in the "spirit" of NZDX).

    Anyone have any insight into Signature?
    Do not consider my postings as investment advice. I am here to share research and to speculate on what might be. The boundary between fact and conjecture might not always be clear - best to treat all comments as speculation.

  2. #2
    Senior Member
    Join Date
    Jun 2004
    Location
    , , .
    Posts
    1,045

    Default

    SGI update.

    NTA has dropped to $0.39 per share with payout of the 5cents per share dividend, the DRP placement and (presumably) the unfavourable AUD/USD cross rate.

    Last trade at $0.29 per share.

    1$NZ buys 1$AUD of fund assets.
    Do not consider my postings as investment advice. I am here to share research and to speculate on what might be. The boundary between fact and conjecture might not always be clear - best to treat all comments as speculation.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •