Bluefreeway was also a good un
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Fisher Funds are a typical example of what many books have found through research:
1) no fund manager can consistently beat the market
2) top fund managers one year fall to the bottom of the performance ranking the following year
3) due to (2) above, investors chasing top fund managers get burnt
What a shocker! BRM prides itself as a 'stock picker' rather than 'market watcher' in its literature. Takes a special kind of stock picker to pick so many stocks which have fallen so spectacularly:
Credit Corp - from $12.56 to 71 cents (-94%)
Blufreeway - from $2.40 to 35 cents (-85%)
Treasury Group - from $16.50 to $10.50 (-37%)
Oakton - from $6.79 to $3.04 (-55%)
Pharmaxis - from $4.45 to $2.42 (-46%)
Maybe BRM should be watching the market instead?
First in basis? That tasty Barramundi is looking like ten day old dead fish left on the beach by a well fed kingfisher?
BRM now 52 cents - a loss of 40% plus! And with stocks in the BRM portfolio like CCP, ABC Learning, Oakton and Treasury group, investors in at $1.00 will require 100% return to get their $1.00 back.
Based upon average long term equity returns, it will take about 8 years to get back to $1.00.
Unless you think that the price pull back is overdone and they move closer to NTA again?
Anyone can make money during the boom period. Even the mums and dads got rich during the property boom.
The real test of a great investor is during the downturn period. Fisher Funds has shown they are just like all the other funds managers.
still around the 50's and NAV in the 70'c
Paper today says some taking action to have BRM delisted so they access NAV
Interesting
I have moved most of my investment activity to the ASX these days as there is far more scope for profitable opportunities over there, particularly amongst the junior miners - provided you watch your portfolio like a hawk.
However, I have been steadily accumulating BRMWB over recent months, and it surprises me that there is not more interest shown by astute contributors on this forum. At an exercise price of 75c and a heads price of 82c, the options are "in the money" to the extent of 7c, yet that is all they are being bid at, at the moment, and yet they still have a whole year to run! Unless you are of the view that the Aussie market one year hence will not be any higher than it currently is - an unrealistic view, in the opinion of most, I would reckon - then an investment in the options would provide you with 10 times the return of an investment of the equivalent outlay on the heads.
The one "fly in the ointment" is the fact that BRM pays out regular dividends, which of course does not attach to the options but, even allowing for this factor, I see BRMWB as very attractive indeed, at its current price.
And no, I don't see these comments as "talking up my book!"
What would happen to the BRM share price in one years time (exercise date Nov 2011 for BRMWBs) if:
1. The BRM share portfolio appreciates 10% in AUD terms over the next 12 months;
2. NZD/AUD appreciates from 76c today to 82c over the next 12 months; and
3. The discount to NAB goes from 10% today to 15% over the next 12 months;
(All realistic scenarios in my view.)
Answer:
1 and 2. BRM NAB goes from NZ$0.90 (A$0.684) today to NZ$0.92 (A$0.752);
3. This equates to a BRM share price of NZ$0.78 at 15% discount.
Therefore the BRMWBs theoretical price would be 3c at the exercise date next year (exercise price of 75c) compared to 7.2c market price currently.
I have looked at BRMWB's recently too Colin but I was burnt by the KFLWA warrants a year or two ago when the discount to NAB blew out to 20%+. I would feel more comfortable investing in BRMWBs if a) the NZD/AUD wasn't so weak; and b) the discount to NAB was higher.
Well, if one has negative feelings about BRM's prospects then one wouldn't be interested in BRMWB, I guess. And your second point would apply to any Aussie dollar investment, which is a view I don't share, given the much better prospects for the Australian economy versus NZ, both short and long term - aside, of course, from today's one-off slippage of the Aussie dollar, due to their lower CPI figure than forecast.
And I doubt if the discount to net asset backing will widen out again to any significant degree, given the lively nature of many of the individual stocks in their portfolio.
Hi Colin, I am with you on the point you've made and to my mind given the high degree of volatility in the world markets, its quite bizarre that the warrants today are trading exactly in line with the share price differential, as of today's closing price 83 cents for the head share and 8 cents for the warrants. Any objective analysis using the black and schoales option pricing methodology would value these warrants significantly higher than where they currently stand, even after accounting for the 8% dividend per year policy on BRM head shares.
Having said that, there are some grounds to believe that Fisher Funds track record is somewhat questionable and I think there's more than an ounce of truth behind balance's post of 2008 above regarding buying up illiqid stocks e.t.c. Of course Fisher Funds have acknowledged that mistakes were made e.t.c., e.t.c. and that new proceedues and practices have been implimented...whether you believe them entirely and trust them is a matter for each investor to decide. Call me a cynic but I retain some reservations otherwise I'd be in boots and all and have hundreds of thousands of warrants.
Nothwithstanding some concerns, I think Barramundi warrants have excellent capital gains potential and could easily double or potentially treble or perhaps even more in the coming months if the Australian market booms, on the other hand if the world goes into free-fall as some bears continue to predict the most you can lose is 8 cents, so yeah, I'm a cautious believer, allbeit with both eyes wide open.
Disclosure - I have owned warrants for a few months now and currently stand slightly above break-even.
I'm currently looking for a good yield stock and one that's not too volatile in terms of SP.
Does anyone have a current view on BRM (and BRM warrants). The heads are 79 cents today and the warrants are 2.7 cents - so are in the money. The shares are yielding a bit over 9% so that's a pretty good return in the current climate. Buying some warrants and exercising them in a couple of weeks time could be a cheap way in.
Or do you have a recommendation on some other stocks that might be a better proposition?
Are they really yielding 9% though?
Remember Barramundi isnt actually a stock , its just comprised of a basket off aussie stcks, and they
are not yielding anywhere near 9%
Yes, Ratkin, BRM is yielding about 9.6% net currently. (4 quarterly dividend payments of about 1.9c = 7.6c / 79c share price = 9.6%.) Not sure about imputation credits.
BRM (and KFL) changed its dividend policy a year ago so that they both pay quarterly distributions of 2% of the avg NAV for the quarter, regardless of whether the basket of stocks pay any dividends or not.
Pierre, I would view BRM as simply a high yielding 'stock' and not count on any capital gain. It's performance since its 2006 listing has been very ordinary at negative 21% (plus some free options and some dividends).
I would view the warrants as quite risky with only five months to final exercise. Quite a lot could happen between now and then...two lots of 1.9c to come out of the NAV, the market could weaken, the discount to NAV may widen from its current 12%, the NZD/AUD could strengthen... all of which could send the share price from 79c to 75c or lower, rendering the warrants worthless. (Off course the opposite may occur but I am simply pointing out the risks.)
A policy that pays out 2% of NAV each quarter, regardless of actual income, runs a grave risk of eventually paying out its "Capital stock".
As ratkin has pointed out, the stocks in the portfolio wouldn't be yielding anywhere near 9%, few Aussie stocks are. Given that a lot of BRM holders will have opted for additional units rather than cash, there is an element of the old BIL/GPG annual "bonus" issue technique here.
I'd be careful about investing in BRM for these reasons. As someone else mentioned, an alternative approach would be to research the individual stocks in the BRM portfolio and make your own selections/investments. It worked for me a few years ago when I bought AOE, AEV and RKN of the Fisher favourite stocks. AEV was a dud but AOE returned about 6 times its cost when it was taken over. I still hold RKN which has more than trebled in value from purchase.
Oh dear, BRM's top holding Pharmaxis is down 71% today after receiving a negative response on one of its proposed drugs. Doesn't look good for the warrant holders now.
Was 12% of the fund (obviously less now)
Pharmaxis announcement to the ASX was 2 hours 4 minutes before BRM's notice to the NZX and during that time this morning there was extremly heavy and unusal selling of BRM shares. Pharmaxis are their biggest holding by far and they appear to have been aggressivbly buying very recently. What are they doing taking such a large overweight position in a high risk medical research company ? Is this prudent investment ?
Further I find it highly unusual that Pharmaxis were on a trading halt yesterday pending this hugely material announcement but BRM did not see fit to inform warrant holders looking at excercising their warrants on the same day ? This can't be best practice. Very grumpy.
Surely those selling Brm were simply people who had seen the earlier notice put out by pharmaxis?
More disturbing is that a director of Pharmaxis sold about half a million shares
just before the stock went into a trading halt .
Roger, I understand your grumpiness but I think some of your criticisms of the managers are unreasonable. The selling of BRM earlier today was clearly by those BRM holders aware of the PXS announcement (I was one of them, I have alerts recorded against the sp of the larger BRM holdings and receive relevant announcements by email, so I waited for market opening to see the extent of the impact on the PXS sp and then reacted accordingly).
The BRM managers won't have been aware, prior to today, of whether the PXS announcement was going to be positive or negative (unless you take a much more jaundiced view of things than I do) and so won't have been in a position to make an informed announcement to the market re BRM warrant exercise. It's not clear to me that they should be obliged to report merely that one of their major holdings is in a trading halt - Presumably that announcement would encourage as many people to exercise as it deterred so I'm not sure the net result would have been much different.
As to the prudency or otherwise of BRM's investment in PXS - it's near certain there would have been no complaints had the investment paid off and the sp rocketed upwards.
There is good transparency/communication around the BRM holdings and the rationale for those investments - in the end responsibility for accepting or rejecting that particular risk/reward mix must lie with the BRM shareholder.
Discl. Sold out of BRM today, still hold BRMWB
The big question now is whether or not the BRMWB's will be in the money come 27 October 2011? Strike price = 75c
It could be very close.
Reduction in NAV after PXS's big drop today = 0.943 x 12% x 75% = 8.5c (PXS represented 12% of BRM and suffered a 75% drop since 18 May NAV announcement of 94.3c undiluted)
NAV today = 0.943 - 0.085 = 0.858 undiluted (assuming all other investments stayed the same)
Take off two quarterly distributions before 27 Oct = 0.858 - 0.02 - 0.017 = 0.821 undiluted
Generously assume the two chaps running BRM can generate a 5% return over the next five months = 0.821 x 1.05 = 0.862 undiluted
Diluted NAV = (0.862 x 109.3m shares + 0.75 x 45.3m warrants exercised) / (109.3m + 45.3m) = 0.829
Assume current 11% discount will remain = 0.829 x (1 - 11%) = 0.738
Voltaire - I thought I could rely on BRM to manage the portfolio in a prudent, careful and well diversified manner. I fail to see how taking such a large holding in an extremly risky drug development firm is consistent with good prudential management. Perhaps its being managed with the primary focus of trying to substaintially outperform the market in the hope of the manager looking to earn performancee fees, capitalise a share of the profits for the managers and if it all goes wrong what the heck, the shareholders wear all the risk. It looks like recklessness investment to me.
I believe the vast majority of investors would prefer to see a far more diversfied investment base with no more than 5 % in any one stock, preferrably no more than 3%. Of course that would involve a lot more work and research for the Barramundi investment team...
I remain of the view that given the material effect on the SP warrant holders shoudl have been informed that Pramaxis was in the trading halt especially given that a yes or no has had such a dramatic effect on the SP, clearly a case of substaintial pending uncertainty where warrant holders would normally have been best to sit on their hands and not excercise, (if the company had been reasonable enough to inform them) Good upside, limited downside for warrant holders = do nothing and possibly excercise later, I am sure you would agree. Of course its in Barramundi's interests for warrant holders to excercise, that almost goes without saying so there was a vested interest on their part not to highlight the risk.
I have taken my concerns up with the company.
Fair call
The beauty of hindsight ah.
I think it is a little short sighted having this conversation after the event, instead why was no one throwing toys with them having this large holding to start with? Instead of post the poor outcome.
So the 70% fall is irrelevant, if it went the other way would people still be posting messages regarding an unweighted/risky portfolio?
These look like comments in anger towards the 70% drop, not the portfolio composition which was a problem (depending on your view) for a long time.
Agree on all points buns.
Roger, PXS has comprised a major part of the BRM portfolio for years (it was 10% of total investment even 2 years ago - 20/5/09). You have had all the time in the world to raise your concerns with Fishers or to sell out.
Interestingly, they have been moving slowly in the direction of greater diversification that you suggest.
The 5 largest holdings as of 20/5/09 were:
Arrow Energy Limited 19%
Pharmaxis Limited 10%
Pipe Networks Limited 10%
Aevum Limited 7%
Tox Free Solutions 5%
A combined total of 51% for the 5 largest holdings!
(As an aside, the overweighting in Arrow worked out very well for BRM holders)
Anyway, I hope you get a satisfactory response from BRM and will be interested to read it.
Anna - Thanks very much for your support, the spelling and grammer could have been better but for some strange reason I feel a little hot under the collar at the moment. If I get a reply from Barramundi I'll post it up here word for word.
Voltaire - I acknowledge I have been very lax and sleepy on my investment with BRM, my bad, I thought it was a set and forget investment, of course you are right I should have kept a far better watch and taken more interest. Nothing like a bit of pain to make one reassess their investments. But am I really that misguided to think I can just invest in something like this, set it and forget it trusting that they will excercise good prudent investment methodoligies ? Obviously more fool me, I can't trust anyone to manage my money in a careful dilligent and prudent manner. I should have been alerted to their lack of diversification a very long time ago as you quite rightly highlighted.
What a brilliant company Ryman are by comparison, opps, sorry, I digress....
The other thing to note here is you are investing in a stock picking portfolio following a ‘value’ mindset (notice all her buffet comments??), not a fully balanced asset class thing like Gareth Morgan.
Stock pickers buy undervalued stocks/markets. Portfolio composition in these will never meet the requirements you state above.
It's these exact reasons Fisher has beat the overall market over the last 5 years, but as we see here, you will eventually lose out a tad taking that risk.
How have BRM performed compared to the ASX since inception Buns ?
Balance - Lets have a look at BRM's performance since inception shall we ?
Going as far back as the Direct Broking chart allows me BRM were $1.15 in February 2007 and of course we are now at 77 cents. hmmmm, I'm sorry, I'm confused, can someone please explain to me what part of losing a third of your money over four and a bit years is impressive ?
From my viewpoint Carmel Fishers record sucks and please don't say the dividends, other companies pay dividends too and actually increase in value.
Look at last page here and make your own call .... 5 year returns a bit well well oh oh
http://www.fisherfunds.co.nz/uploads...owth_May11.pdf
Sounds like you got sucked in by the hype Roger .... why in hell did you invest in something that was stated as a 'stock picking' fund based on under valued small caps in Aust when you suggest you wanted a fully diversified sort of balanced fund
had to laugh that PXS was one of the big movers in April ... probably make the list again in May
Barramundi does seem to have suffered an extraordinary amount of bad luck .
Trust them to pick a biostock that failed
Voltaire Roger et al,
I am not a holder of BRM but do hold Fisher Funds Australian Growth Fund and also NZ.
FFM seems to me to be slow to act over the years.
Like Voltaire (price alerts) because of my concerns I set up a watch list for FFM NZ and also for FFM AU holdings some years ago.
As I don't know the relative % holdings of each stock this is not in my model.
I monitor the watch lists daily.
If price action for a stock concerns me I do look at TA charts and read the news for the relevant stock on DB site
Roger while you say you should have kept a better watch, even if you had been watching closely you still may not have picked the outcome.
For example, In FFM Undergrowth printed newsletter May 2011 with performace to 30 April 2011 that I received just last Saturday:
Australia (page 02) .6% loss for month.
...it was the biggest portfolio position in Pharmaxis (+12%) that made the largest positive impact on performance. There was no major news flow driving although the market is positioning for an announcement expected in May on European approval for Bronchitol. Universal Biosensors (+12% lifted a similar amount as Lifescan continued the European roll out of One Touch Verio (R)for which UBI provides the strip technology.
I don't know whether FFM/BRM have 12% of the portfolio in PXS as in the newsletter context 12% was the increase in SP for both PXS and UBI in the month of April.
PXS is down 1 cent at this point after bouncing back 8.5 cents earlier today. UBI all square.
All the best.
Keep smiling.
Fisher Funds have published the NAV for the Australian Growth Fund at close of business yesterday.
It is AUD$ 2.1972 down from AUD$ 2.4387 the day before.
A loss of 10% ish however most of the ASX and FFM other stocks were down yesterday also.
Last time FFM Australian Growth Fund was at these levels was 2 Sep 2010 when it was 2.1894.
Eight and a half months growth lost in a day ...
Today 6 FFM AGF stocks are up, 3 down, 9 no change...
Yes, grim.
I bailed from my Australian Growth Fund holdings a few months back (short of the high but well above today's quoted unit price). I decided I didn't like the model, for the reasons yesterday's PXS price drop demonstrated - had I decided yesterday to quit my Australian Growth Fund holding my exit price would have been calculated on the unit price at the end of the day (the $2.1972 you quote above). In contrast, in holding BRM I was able to act immediately on market.
Arguably the BRM sp has suffered less than might be expected (currently at 76c).
Note: the unit prices quoted by Fishers are $NZ rather than $AU
I think that the NTA is in NZ dollars Toulouse. With the change in the cross rate also having an affect on the NTA.
http://www.fisherfunds.co.nz/unit-prices.asp
Thanks for the correction NAV in NZ$
Current NTA just announced for BRM 83 cents something, sorry I forgot the decimal points in the shock of over a 10 cent decline in NTA in one week.
To answer some of the points raised:-
I notice those on here who have the time to monitor the situation closely are able to take advantage of this due to the untimely manner in which material Pharmaxis information was released to the market.
BRM's response to this point I raised with them yesterday is that the team were on a conference call with Pharmaxis, whether you believe this was for the full two hours 4 minutes between when Pharmaxis made there release to the Australian Stock exchange and BRM made theirs to the NZX, you be the judge, obviously those investors on here who invest the time to monitor BRM's individual investments reaped the reward for their time and effort. and the expense of an otherwise uninformed market. Whether this is right or otherwise you be the judge but it goes without saying I'm not impressed.
Value investing / stock picking and a good level of diversification are not mutually exclusive investment methodologies. Clearly I should have paid far more attention to BRM's portfolio and their investment operation, (I only have myself to blame for this), but I'll forgive myself because of 101 other matters during the GFC have kept me busy.
I remain of the view that investing 12% of a portfolio in a single biotech company is at "very best" a hugely risky investment approach. It could easily be argued that this amounts to self serving behaviour on the part of the investment manager and as such is grossly reckless investing.
Its become crystal clear BRM investment methodology and mine are at a considerable divergance so I'll be exiting the company at the first realistic commercial opportunity. Happy to post up Barramundi's response if I get one.
Good luck to those investors staying in long term.
I notice that MLN's largest holding is 6.3%.[Biotest Germany]Also notice they are thinking of us with their 2.3% in Fook Woo,China.[I kid you not.!]
Roger 2.5c of that fall could be attributed to the change in the currency.
777 - With respect, In their very latest quarterly investment update received only a few days ago they said they were 80% hedged against a rising N.Z. Au currency.
What I can't fathom is that the NAV of BRM has dropped 10.6c in one week (0.943 -> 0.837) and the share price has only dropped 2c (0.79 -> 0.77). Is FF buying back stock to keep BRM above the 75c warrant level?
Roger - I framed my question incorrectly.
I meant to ask if you looked at Carmel Fisher's track record closely before you invested in BRM.
She is known in the broking industry for buying high and selling low. She is also known for great PR - that's how so many punters get sucked into making her millions while she loses millions for them.
Agree with you re the SP. I'd be surprised if FF were buying at this price but we'll know soon enough (they generally report any purchases the following day). There's no particular reason for them to keep the warrants "in the money" - the most recent exercise date was 2 days ago, the next 23 August and the final exercise date 27 October.
Balance me ol mate, we're on the same page again, I feel better now :)
No buddy, I got suckered by the fancy PR marketing machine.
BRM will be punished by the market when lots of warrant holders let them lapse, that's my prediction.
Clearly the shares are overpriced at present (83.7 NAV cents less their historical average discount to NAV of about 12% = 73.6 cents. Frankly I don't think they're even worth that.
This is a dog. Speaking of which I reckon I could have got Skippy my dog to walk over the sharemarket page of the Sydney Morning herald a few years ago and picked the stocks he put his paw prints on and done way better than Barramundi so called investment "managers". Anyone want 150,000 warrants @ 2 cents a pop, (part warrant sale not considered). PM me. On second thoughts f#ck it, I've lost so much money I might as well go down with the bloody ship. Who knows Pramaxis might come right and it doesn't cost me much to wait and see for some more months. Maybe I'll ask my dog, one bark for get out now, two for wait and see, lol
P.S. I feel a bit better after having a bloody good bleat about things, there forums are great eh ?
ONVERSION OF WARRANTS AT 26 May 2011:
The following details are provided for the purposes of listing rule 7.12.9
a) 3,354,510 warrants have been converted into 3,354,510 ordinary shares
b) n/a
c) 41,915,632 warrants remain to be converted on 26 May 2011
... and Fisher Funds sell off PXS:
FF no longer a significant shareholder, with the sale of 700,000 shares yesterday for $576,096 (an average of roughly 82c per share - not bad given today's close of 71c).
Fisher Funds launched Barramundi on 26 October 2006, 100,000,000 shares issued at $1.00 Par.
Nearly five years later they're 76 cents. What further illustration of the "mighty" Carmel Fisher and her investment team's performance is required....
According to the FF website, Carmel Fisher is the investment manager for the NZ portfolios and a couple of chaps by the names of Frank Jasper and Terry Tollich do all the Australian stock picks. So I'm not sure if Carmel has had too much say in how the Aussie portfolios are run. You would hope Frank and Terry will be on tight leashes now or be replaced.
Roger - Looks like FF has now exited PXS completely. This, from the FF website...
Obviously the drop the in the Pharmaxis share price yesterday was a tremendous disappointment to us and a massive surprise to many investors in the company.
In short it seems that the European Medicines Authority (the regulator) is unlikely, at least at the first hurdle, to grant marketing authorisation for Pharmaxis to market its drug Bronchitol for Cystic Fibrosis in Europe. As the share price response indicates this was a massive negative surprise not only to us but to the analyst and investor community at large.
Assuming that Bronchitol receives a formal negative decision when the regulator meets again in late June (not definite), we believe Pharmaxis will probably appeal the outcome.
This appeal process would represent a delay of 6 months on the original timetable for a European marketing approval, assuming a successful outcome.
The chances of success in the appeal process are difficult to ascertain. Since January 2009 8 drugs have appealed negative decisions, with 3 of those appeals proving successful. PXS believes it will eventually prevail and receive European marketing approval.
The challenge for us right now is to assess what this means for the company’s future. Clearly the risk of ultimate failure to achieve this marketing authorisation has gone up although the key issues raised would seem to be addressable in any review process. Unfortunately, for now though, the risk faced by PXS has risen substantially we have decided to exit our position in the company and watch the review process from the sidelines.
Whilst the balance of probabilities suggests the company may be successful a major negative shock of this scale leads us to believe this is the prudent approach.
These don't look too bad.
Current Unit Price (as at 25 May 2011) $2.1972
Fund Inception June 2005
How has the fund performed as at 30 April 2011
One Month Twelve Months Two Years* Three Years* Since Launch*
Australian Growth
(Average Annual Compound Return) - 0.7% + 18.7% + 32.4% + 12.6% + 9.4%
Benchmark
(90 Day Bank Bill Rate) + 0.2% + 3.1% + 3.0% + 4.4% + 6.2%
Selling Pharmaxis is probably yet another classic example of buying high and selling low.
Sex sells, that picture of her sitting there is designed to seduce aging into "investing" their money, I'll really look after you, YEAH RIGHT. Just another cunning marketing trap.
Yeah I hope those two idiots "managing" if you can call it that, the Australian portfolio are given the boot, there's no excuse for taking such extreme risks with investors money. Get rid of them.
ASX200 in October 2006 5154
ASX200 today 4653
We are all stock pickers but those stocks still float up and down with the index.
It appears that some posters have made a stock selection that has lost money and the typical reaction is to blame someone else and not take personal responsibility for their decisions.
Or it could be that a fund manager who takes a fee for managing money should have more consideration for the outcomes (both positive and negative) of the investments they are making ON BEHALF of others. Benchmarking against a 200 stock index suggests low risk to any one stock, having 12% in one stock does not suggest prudent risk management
I look forward to seeing what Carmel or Frank have to say about this on Newstalk ZB, Tuesday next wk 6:30pm.
where's the praise for the seductive one and her white knights on making heaps of money out of Centrebet
OMG it was 7% of the portfolio as well ,,, and it was a sin stock as well
Lets hope they are now gun shy, and put all those (reduced) funds into there old fav RYM
We've been seduced allright...into misplacing our trust, (the worst sort of seduction).
Wow Centerbet up a whopping 6% today, I'm so overwhelmed (NOT), compared to a 70% loss the other day for Pharmaxis and then they go ahead and crystalize the loss, crikey those investment managers at BRM are real rocket scientists arn't they !!
Having 12 % of BRM's money in an emerging biotech company is inexcuseable and any comparison with holdings in Arrow energy in recent years are not entirely relevant, they're naturally quite different companies and emerging biotech companies are well know for their extreme outcomes, unusally losses.
It stinks of a self serving investment designed to either reap big rewards for outperformacne for the managers if it goes right and amortise the losses across all shareholders when it goes wrong. Gross recklessness anyone or at the least breech of fiducary duty ? To sell out now under the guise of being prudent is a complete farce, all they're trying to do is cover their backside if it goes down to nothing and in the process costing shareholders any possible upside recovery. Selling now on the other hand means a quick end to this complete fiasco, obviously something the manager is clearly very keen to achieve.
I do accept however that the overall performacne of the ASX has been anything but inspiring in the last five years but I'm still convinced Skippy my dog would be a better stock picker, and no doubt much cheaper.
Buns I wish they could just whack it all into Ryman, obviously not with the BRM portfolio being limited to Au stocks. This is precisly why I'm going to manage all my own funds and do my own stock picking in the future.
In the meantime we need to push hard to get rid of the current investment "managers"
PXS up 17c to 88c with notice that a Director has been buying.
Obviously it was a flippant comment but there's quite a difference between a brilliant stable and quite predictable growth stock like Ryman and a Russian roulette gamble on an emerging biotech company. The only two things those two stocks have in common is they're in the health field.
There's a vastly different risk profile between these two companies, in fact i'd go so far as to say its almost impossible to overstate how wide the gulf is.
Hi 777,
You make a fair point at face value that FFM BRM (and also FFM Australian Growth Fund AGF and NZ Growth Fund NZGF - I hold both) have delivered gains over recent months.
However we all look at performance related in our own personal situation.
Whether FFM AGF and NZGF has been a winner depends on just when and how your capital input went in. For example the timing and amount of lump sums and monthly contributions and whether you kept investing new capital monthly after the large falls of a couple of years ago (GFC).
Notwithstanding recent newsletter published gains there are long term FFM investors that are out of the money and especially now with FFM AGF and the PXS disaster.
Hi all,
Todays situation and subsequent share price action in PXS reminds me:
One lunchtime, a few years ago in the Direct Broking WLG office area that had PCs available for investors I met a chap who was checking on how his very recent investment in Centro CNP on the ASX was doing.
After the initial collapse of the CNP shareprice he had quickly invested at the bottom anticipating a bounce as all the bad news was out there and people had panicked driving the share price down. He thought there was an opportunity for short term gain.
He had not been a CNP holder before the SP collapse.
His entry and exit strategy was very successful.
I note tonight that today PXS is up 21 cents to 92 cents at the close and 19.5m went through at VWAP 86.7 cents.
FFM averaged 82.29 cents for their 700,000 shares.
It is on record that: a director of PXS sold 500,000 shares at $2.95 a week before the announcement and that another director bought 250,000 at 80 cents today. BNP Paribas sold 3.5m shares about 18% of their holding.
I am not clear if FFM and BRM are 100% out of PXS at this point ...
T-L : Check out the FF website for their comment on PXS...
"...we have decided to exit our position in the company and watch the review process from the sidelines."
FF's style is that they dump and run when selling, just as they chase and ramp when buying.
Signaling to the market that they have decided to sell is plain dumb - unless they have already sold.
But then, FF has never had any problems with attracting the punters to lose money - $24m lost and she has made millions losing the money. Nice!
^^^ Yeah mate, sigh...have they ever heard of the phrase, reduce ? No just dump the lot all at once and call that prudent ? It just beggars belief...
PXS up 35% today to $1.25.Looks like a bad decision Carmel.
At least this holding was liquid. She tends to build up large parcels in illiquid stocks that she can't get out of if things sour. Might have been better in this case if she was stuck with it!
No she doesn't care. Just pose for seductive photo's, hire the best PR and advertising money can buy, hire some brainless muppets to manage the money and go shopping...not bad work if you can get it.
You need to be careful that you are not had up for slander. Opinion is one thing but without proof you are are setting yourself up.
If you guys are so clever then you would not be boring us on here. You would be out there doing it rather than complaining how others are so incapable.
They have performed better, or at least as well, than most other NZ fund managers especially with their Kiwisaver Fund.
How many investment mistakes have other funds made? Performance is all an averages game.
We are not all like you guys. We have made mistakes.
Investors in Kiwisaver funds can change fund managers easily, on the other hand the investment of BRM funds is "captive" if only BRM shareholders could exit at NAV, there would be a stampede for the door.
Lots of references to plural 777, "we, us," you presume to speak for the majority of others yet the general consensus recently on this thread suggests anything but.
I have not had a reply from Barramundi regarding the serious concerns I raised with them. I stand by all my earlier comments and further believe that the highly questionable manner (including but certainly not limited too the very poor diversification), in which the funds in Barramundi have been invested and the manner in which buy and sell deals are executed will deliver poor on-going performance on a risk-reward basis. I have lost any remaining confidence in the investment methodology and the investment managers at Barramundi and have completed my exit from this company. I don't believe the warrants hold any value whatsoever except in the case of a dramatic increase in share values in the remaining warrant period, which in my view is extremly unlikely. Good luck to those of you who continue to have any remaining faith in these so-called investment managers. I won't be posting again on this thread.
not looking too good for those options 0.1c now . and expire at 75c in 3 weeks.
In regard to my earlier comments and the warrants. No one in their right mind will be excercising their warrants now with the head share at 63/64 cents. That's close on 50 million warrants @ 75 cents that won't be excercised and the "mighty" team at Barramundi will not be earning, (I use the word very lightly indeed), their so called "management" charges on approx $37 million of funds under "management". Natural justice doing its work....
Regretting their decision to exit pxs last May and take a $34m loss? Maybe a little but after todays action they would have still been under water
And no doubt what they reinvested the cash in has done wonderfully well