A few factors in recent times have led me to reflect on whether some funds known for shareholder activism perform well.
Sometimes it is ironic to see these funds trade at large discounts to NAV, yet often the activists have criticized other funds for this very reason.
In Australia, we are close to a decade from when a few activist style LICs launched, so surely that is long enough to judge to some extent?
An overseas activist fund is slowly building up some stakes in ASX closed end funds, so I thought it would also be interesting to check out some US activist funds.
Continue reading “DOES SHAREHOLDER ACTIVISM WORK?”
A recent AFR article reminded me once again about how ASX LIC performance fees are a very nice deal for the fund managers. The article quite rightly posed questions about how they are free to choose whatever benchmark they like. Then why they sometimes are rewarded substantially when the shareholders go backwards, and why there is no standardised format to present what their performance numbers actually are.
In fact it, is due to the issue of ASX LICs choosing all sorts of variations in performance reporting methods that I wanted to explore some LICs in particular. Have they earnt performance fees way out of line with the results they have achieved?
Continue reading “ASX LIC PERFORMANCE FEES L1 CAPITAL, THORNEY, WAM CAPITAL, VGI PARTNERS”