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.
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.
|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.
|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