By Deep Value investments @DeepValueInv
Exited KR1. The price went up a bit from my entry at 3.75. Coupled with this, the price of the underlying crypto fell quite a lot – 20-30% following China’s ban on ICO’s. Nothing like good timing – and this was nothing like good timing….
Clint Carlson's Carlson Capital Double Black Diamond fund returned 3.34% in August net of fees. Following this performance, the fund is up 8.82% year-to-date net, according to a copy of the firm's August investor update, which ValueWalk has been able to review. On a gross basis, the Double Black Diamond fund added 4.55% in August Read More
This left it at a discount of about 10% at one point, so I wasnt inclined to hold. There has also been quite a bit of selling of KR1 – today all trades were pretty much sells…
My sale was omething of a miscalculation as their holdings have since rebounded – discount is now about 25%… Still now not attractive to me – but if holdings go up another 20% in a day – as crypto tends to, it might be. There is a margin for error – I dont know whether management sold at the top – so this thing is worth £10m if they sold at the bottom so its worth 6, or not at all…
I’m not a true believer in KR1’s underlying crypto – though I do belive there may be a place for it more generally. I was holding it somewhat based on a greater fool theory – though I could be wrong. I think any bubble may have much further to run.
I will get in again if it trades at a 50-60% discount – subject to the underlying crypto sentiment. I still believe it could get to a premium – but not if the underlying holdings drop 33% for no real reason over a couple of days.