Closed-end funds have been a topic of interest among finance academics and professionals on five counts. First, they tend to sell above their net asset value at their commencement. Second, they start selling at a discount within a year. Third, this discount is volatile but mean reverting. Fourth, the news...
Any attempt to analyze a venture fund must take into account the way in which, such a fund works and the resulting J-curve. This article explains that a traditional 'Net Asset Value' approach is inappropriate and is likely to give the mistaken impression during the early years of a fund's...
Marc Courtenay submits: In the investment world it is easy to overlook some lucrative opportunities, especially ones that sell below their net asset value [NAV]. ASA Bermuda Ltd (NYSE:ASA) is an employee owned investment manager with approximately $537 millions in assets under management. The firm manages close ended funds for...
R. J. Rhodes submits: Franklin Templeton BEN has given back a lot of ground in recent months. Naturally asset managers decline when the overall market falls. But BEN has significantly lagged T. Rowe Price TROW and Blackrock BLK. These two peers are up slightly over the last 12 months, while...
Real estate investment trust REIT stock prices deviate substantially from net asset values NAV. Using REIT data since 1990, the paper finds large positive excess returns to a strategy of buying stocks that trade at a discount to NAV, and shorting stocks trading at a premium to NAV. Estimated alphas...
FP Trading Desk submits: Now that Eldorado Gold Corp.'s EGO acquisition of Frontier Pacific Mining is all but closed, Blackmont analyst Richard Gray has officially added the Perama Hill gold project in Greece to his valuation mix. As a result the analyst increased his net asset value for Eldorado...
As the mutual-fund probe widens, 401k plan sponsors are taking a hard look at an industry long regarded as a reliable workhorse for individual retirement plans. If the practices being investigated are found to be widespread, plan participants may be being robbed of billions of dollars in retirement savings. Investors...
A Real Estate Investment Trust REIT selection and portfolio construction criteria is developed based on REIT operating efficiency and pricing multiples (price-to-net asset value). Portfolios of REITs are constructed of REITs that have relatively high operating efficiency but are trading at a relatively low price. The results show that these...
LONDON (Reuters UK) - Property company St Modwen Properties SMP reported a first-half loss on Monday and said while market conditions remained uncertain it was confident about its longer-term prospects. The regeneration specialist said it had made a pretax loss of 20 million pounds, after...
This paper looks at the prices of another kind of investment trust: real estate investment trusts REITs. REITs are not the same as closed-end funds, because REITs own and often operate relatively illiquid real estate assets. It documents that real estate investment trust REIT stock prices deviate from net asset...
American consumer bankruptcy provides for a Fresh Start through the discharge of a household's debt. Until recently, many European countries specified a No Fresh Start policy of life-long liability for debt. The trade-off between these two policies is that while Fresh Start provides insurance across states, it drives up interest...
In addition to checking and savings deposits and CDs, banks often offer investments in mutual funds. While mutual funds are often used to invest in stocks and bonds, a major chunk of total assets is invested in money market funds. Unlike FDIC-insured deposits, money market funds are not federally insured...
Tim Iacono submits: The SPDR Gold Shares ETF GLD continues to add to its holdings (see the company's website for details). As of Wednesday, the "tonnes in the trust" for the world's most popular gold ETF increased to 659 tonnes, just short of the record set in March. ...
FP Trading Desk submits: Despite the fact that he expects Suncor Energy Inc. SU to reduce its full year oil sands production guidance along with second quarter results, UBS analyst Andrew Potter remains very bullish on the integrated energy company. He rates the stock, which has declined 17% in...
FP Trading Desk submits: The performance of equities in the copper producer universe have underperformed the underlying commodity during the past few weeks, says Raymond James analyst Tom Meyer, pointing out in a research note the overall Price/Net Asset Value multiple of .7x was lower Wednesday than it was...
George Spritzer submits: I picked up a small starter position yesterday in First Industrial Realty FR and plan to accumulate more on further price dips. First Industrial develops and operates warehouses and light industrial buildings in the top industrial markets in the US and select industrial real estate markets...
Standard and Poors Depository Receipts SDPR commonly referred to as Spiders. First, the principal advantage of Spiders versus index funds is that they can be purchased and sold at prices, which exist at any time during the trading day. Since Spiders have become an important investment vehicle in terms of...
By Sinead Cruise LONDON (Reuters UK) - The stricken quoted property sector faces up to a year more of market turbulence as it waits to see how occupiers grapple with poorer economic conditions, Land Securities LAND said on Wednesday. The sector's largest constituent provided little hope...
Westpac Funds Management Ltd WFML said $31.3 million has been wiped from the valuation of its office trust portfolio during the second half of the 2008 financial year, as credit crunch impacts.WFML, the responsible entity of Westpac Office Trust, also estimates it will pay a lower gross distribution of...
By Tom Bergin LONDON (Reuters UK) - Russia-focused oil company Imperial Energy Corp IEC said on Monday it had received a bid approach from a party it did not name but which industry sources identified as Indian state-controlled ONGC ONGC. Shares in Imperial Energy were up...
