Seeking Alpha
Editor's notes: SEC.TO trades at a discount to NAV despite a stellar performance record. As 2008 rolls off its 5-year average, the company could grow funds dramatically, leading to significant upside.

Investment management firm Senvest Capital (OTC:SVCTF) offers investors an incredible risk-return trade-off (the Toronto Stock Exchange shares under ticker SEC are more liquid). Shares are trading at a 40% discount to a very liquid net asset value (NAV) which consists primarily of investments in the firm's funds, Senvest Partners and Senvest Israel Partners. In addition to this, and what I think is completely overlooked by investors, is that the 5-year track record of the company's flagship fund, Senvest Partners, will change in a dramatic way once we enter 2014 and allow the firm to build a lucrative fee generating investment management business. Investment management businesses tend to trade at high P/E multiples and this value will be in...

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