Alternative Liquditity Fund – Adding A Touch

Alternative Liquditity Fund – Adding A Touch
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Added a touch to this at 17c last week…

It has done very nicely since I bought – returning 7.5c when I paid 13c for the shares to start with, hopefully the returns of cash will continue..

See original post for investment case…

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Based on information from the latest fact sheet they say they have 4c in cash, the share price is now $0.18 to buy – so c20% backed by cash.  (Less 0.68c worth of payment for extra assets)

They also say Arbax Arhat Fund is 5.8% of NAV 0 or 4.4c  – they have been offered 20% of the book value with 50% of any recoveries.  This was refused by holders. I think therefore it’s safe to assume this holding is worth 50% of what was in the books – 2.2c.

Next they say GLG Emerging Market’s growth fund will pay out this year, this is worth 1.7c.

Total this up you get about 7.5c backing in cash or ‘hard’ assets -43% of the offer price.

Looking at this another way you are actually paying 10c for about 69c of non-hard assets.

That is if you believe the NAV.  I don’t believe the NAV so I actually think likely maximum recovery is about 50c of non cash assets…

They also say they have bought $3m of assets for $1m – this means the business is more sustainable than I thought – I had viewed this as pretty much a static pool of assets that would be liquidated.  This is actually more like a trading business which buys defunct assets and liquidates.  With lots of hedge fund failiures this is a touch more attractive.

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