HGEN Double or Quit ?
Posted: February 24th, 2024, 7:26 am
As part of a strategy to diversify my energy and resources I opened a small position in this fund soon after it came out. After a slow start the fund moved up to a price around 120 but thereafter it's done nothing but fall in price. It now trades around 48 although, ostensibly, the NAV is reportedly around 101, a discount of more than 50%
I've had a couple of shares recently where the fund managers decided to liquidate their funds because of persistent trading at substantial discounts to NAV. Sometimes this can benefit shareholders but at other times it's bad news.
In the case of HGEN I would be happy if the fund manager could liquidate at the current NAV but that's not going to happen, so I can either double up at the current market price around 48 or sell at a loss. If I double up it will cost very little and at least my average cost will drop to the mid 70s.
I'm mostly a longer-term investor but if there's little future for this fund I might as well quit now and reinvest elsewhere. The 2023 annual report will be out soon so maybe it's worth waiting to see what that says, but I am thinking more towards selling and moving on.
Any constructive views on this welcome.
Y
I've had a couple of shares recently where the fund managers decided to liquidate their funds because of persistent trading at substantial discounts to NAV. Sometimes this can benefit shareholders but at other times it's bad news.
In the case of HGEN I would be happy if the fund manager could liquidate at the current NAV but that's not going to happen, so I can either double up at the current market price around 48 or sell at a loss. If I double up it will cost very little and at least my average cost will drop to the mid 70s.
I'm mostly a longer-term investor but if there's little future for this fund I might as well quit now and reinvest elsewhere. The 2023 annual report will be out soon so maybe it's worth waiting to see what that says, but I am thinking more towards selling and moving on.
Any constructive views on this welcome.
Y