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Brian Derenne
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  • Thai Capital Fund Update 0 comments
    Dec 11, 2012 1:42 PM | about stocks: TF, 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.

    DATENAVMARKETDISCOUNT %
    August 6, 201211.9010.72(9.92)
    December 10, 201212.9512.43(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.

    FUNDMANAGERSTRATEGY
    Bulldog Investors/ Brooklyn CapitalPhillip GoldsteinActivist/ Discount Trader
    Karpus Management, Inc.George KarpusActivist
    Doliver Capital Advisors, Inc.Ronald OlinActivist
    1607 Capital Partners, LLCJim MalloryActivist Follower
    City of London Investment Group, PLCBarry OlliffEngaged Shareholder
    Western Investment, LLCArthur LipsonActivist/ Discount Trader
    Lazard Asset Management, LLCN/AActivist Follower

    Disclosure: I am long TF.

    Additional disclosure: I am short THD

    Themes: closed-end fund discount Stocks: TF, THD
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