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Thai Capital Fund Update

|Includes:Thai Capital Fund (TF-OLD), THD

Thai Capital Fund (part 2)

On December 5, 2012 Thai filed a Registration Statement with the SEC relating to a proposed rights offering allowing the holders of common to subscribe to a class of preferred.

http://www.sec.gov/Archives/edgar/data/861865/000110465912082105/a12-28329_1n2.htm

The Offer will permit stockholders that support liquidation of the Fund to accumulate enough voting shares to obtain the necessary vote on liquidation. Shortly after the offer expires, the Fund will hold a special meeting of stockholders to consider liquidation.

This is great news for anyone looking to profit from the discount to NAV. My initial position was entered on August 6, 2012.

DATE NAV MARKET DISCOUNT %
August 6, 2012 11.90 10.72 (9.92)
December 10, 2012 12.95 12.43 (4.02)

My dollar neutral short hedge on August 6, 2012 in THD has gone against me but I still have a great annualized risk adjusted return that should continue to improve as the remaining discount narrows.

The activist closed-end fund space is relatively small and overlooked. If you follow activity closely you can find some great opportunities. The SEC website will provide most of the necessary information. It's great to find funds involved in events but you will also find many opportunities in discount mean reversion trading.

I will help you by providing a list of the major players you can follow. Study their portfolio holdings and SEC filings.

FUND MANAGER STRATEGY
Bulldog Investors/ Brooklyn Capital Phillip Goldstein Activist/ Discount Trader
Karpus Management, Inc. George Karpus Activist
Doliver Capital Advisors, Inc. Ronald Olin Activist
1607 Capital Partners, LLC Jim Mallory Activist Follower
City of London Investment Group, PLC Barry Olliff Engaged Shareholder
Western Investment, LLC Arthur Lipson Activist/ Discount Trader
Lazard Asset Management, LLC N/A Activist Follower

Disclosure: I am long TF.

Additional disclosure: I am short THD

Stocks: TF-OLD, THD