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Alex Filonov
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I was born in 1956 in USSR. After graduation from college in 1979 I worked full-time as an IT specialist. Until 1990 I worked for different companies in the Soviet military industrial complex. I created a small software business in 1991, which failed in 1993. I worked for Oracle Corp in 1995 in... More
My blog:
Muddling Investor
  • Flipping Indian Fund 0 comments
    Mar 21, 2013 11:50 PM | about stocks: IFN

    I added to my position in Indian Fund (IFN) today. Sounds simple, right? Not so simple. Reality is, Indian Fund has an interesting strategy. Twice a year fund helps holders to make a little bit extra money. If fund trades at significant discount, it buys shares at net asset value, if fund trades at NAV or above, it sells shares at 95% of NAV. Currently, fund trades at discount over 12%. Fund is buying shares at tomorrow's NAV (there is a fee, of course, 2%, plus something your friendly broker takes). I decided to take the offer and put part of my position on sale. At the same time, I want to keep this position, so essentially I'm flipping shares, selling them at 2% discount to NAV and buying (today) at more than 12% discount. Easy money. The only problem, this time more than 30% of outstanding shares have been put for sale, and fund buys only about 12%. I don't know exactly how many of my shares will be bought, but it's OK. Fund made me a lot of money and increased position is worth it.

    Disclosure: I am long IFN.

    Additional disclosure: Positions can change any time.

    Themes: Closed-End Funds, International Stocks: IFN
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  • Also today: sold short Dec 2013 $6 $SAN puts (naked)
    about 9 hours ago
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