Aug 1 2012, 05:25 PM
QUOTE(river.sand @ Aug 1 2012, 09:23 AM)
What factors should we consider before putting money in closed-end fund like iCap, other than NAV?
Is dividend important? AFAIK, iCap hasn't given any dividend yet.
Icap is a closed end fund, there will be no dividend until the shareholders argees to dissolve & delist the fund. Those getting for quick gain might be dissapointed and have to wait for the longer term, that is why it is not so popular. Is dividend important? AFAIK, iCap hasn't given any dividend yet.
Added on August 1, 2012, 5:31 pm
QUOTE(wongmunkeong @ Aug 1 2012, 05:07 PM)
err.. how about factors like lelong/value in the sense of (current market price / NAPS)?
eg. say market price is $0.75 & NAPS is $1, thus there is a discount of 25%.
The next Q would at what discount would it be worthwhile to buy-in
Like what bro Gark puts it earlier somewhere (hehe sorry ar Gark, forgot where lar) - "it's like buying stocks at last time's prices", assuming last time most stocks crashed and now it's up. I like time travelling with stats. Remember - ICAP holds stocks as its assets.
Personally, for me it's a minimum of 25% discount.
BTW, i was aiming for similar discount for CIMBC25 hehe - saw the market price $ lower than NAPS by about 17%+ earlier but it has reduced now
Ya ya, that's an ETF.
Just similar thoughts on discount / lelong buying thinking, applicable to most stocks, REITs and even physical properties too mar.
Last time I bought, the gap is about 37%, once the gap closed off, I have already disposed of the share and made a bundle. Not interested to go in again unless the gap widens once more. For CIMBC25, CIMB acts as market maker, so it is impossible to have a 17% gap. If it does quickly buy as the bank will have to buy back from you at NAV. eg. say market price is $0.75 & NAPS is $1, thus there is a discount of 25%.
The next Q would at what discount would it be worthwhile to buy-in
Like what bro Gark puts it earlier somewhere (hehe sorry ar Gark, forgot where lar) - "it's like buying stocks at last time's prices", assuming last time most stocks crashed and now it's up. I like time travelling with stats
. Remember - ICAP holds stocks as its assets.Personally, for me it's a minimum of 25% discount.
BTW, i was aiming for similar discount for CIMBC25 hehe - saw the market price $ lower than NAPS by about 17%+ earlier but it has reduced now
Ya ya, that's an ETF.
Just similar thoughts on discount / lelong buying thinking, applicable to most stocks, REITs and even physical properties too mar.
This post has been edited by gark: Aug 1 2012, 05:31 PM
Quote
That is why he does not give out dividend, he is stuck as a closed end fund cannot receive new capital hence cannot grow it's AUM like most mutual funds, if want to earn more, TTB have to increase the NAV. 
He did proclaim that he wants the closed end fund to mimic berkshire hattaway's investment stratergy. So yes, that means he will not pay out dividend. But... BK is trading above book value.. while Icap is trading below... so is both fund same kah? Looks like investors does not have a lot of confidence on TTB. 
But with that kind of salary, I am not surprised. 
)
) with some small nibbling in phamaniaga. Mostly he just sold... but he has a habit to holding on to losers like tongherr and parkson...
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