Yesterday's market fall 1.1% ...KFL NAV down 2.1 % ...but kudos to fund managers who reduced MFT position from 14% to 11% in June qtr .
For me fund managers are doing a great job ...but then some are never happy !!
This is what they said Re Mainfreight ….. We did reduce our position in Mainfreight modestly as we now think it will take the company longer to crack Transport in the US market than previously. However, the balance of the business is performing satisfactorily, and ongoing market share gains in Australia are particularly encouraging
They were right about America and Australian…but NZ must have surprised them
”When investors are euphoric, they are incapable of recognising euphoria itself “
This is what they said Re Mainfreight ….. We did reduce our position in Mainfreight modestly as we now think it will take the company longer to crack Transport in the US market than previously. However, the balance of the business is performing satisfactorily, and ongoing market share gains in Australia are particularly encouraging
They were right about America and Australian…but NZ must have surprised them
Agree NZ even surprised me ...seems they lost pricing power at the moment ...which is understandable if u see the state of NZ economy ...its better to keep the business and the customer then full margin ...so they just being pragmatic I reckon
Will be interesting to see how it affects KFL's share price today
I don't think it will. It does help with moving the discount to Nav closer. Maybe this explains the gap and the reluctance of a big buy up of the heads prior to the warrants exercise date.
It does however give more clarity on the decision process for those who were thinking of exercising their warrants.
Which serves to prove my point that having large proportions (10% to18%) of the investments in a small concentration of companies in a shrinking NZX is becoming a growing risk. KFL is running out (run out?)of new things to buy. The higher the concentration in the favs, the greater the potential returns..and of course risks.
I'm a 20 year holder. I'm not dissatisfied, but I'm also an active holder. The recent reduction in MFT holdings was more than likely coincidence in my opinion as there were no signals or intel disclosed that I'm aware of. The fund needs more diversification in my view but with little else to buy do they simply keep buying more of the same.....or more of themselves?
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Originally Posted by Rawz
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