For accredited investors, there is a private offering in Canadian dollars for Mongolia Growth Group at 3.51 CDN$ through June 10, 2011, this Friday. Regardless of your ability to participate in the offering, this may create a buying opportunity in a thinly traded stock investing all funds in Mongolia. Van Eck has announced they will be rolling out a Mongolia ETF soon, however, it looks that Van Eck's ETF holdings will largely be companies domiciled outside Mongolia doing business in Mongolia whereas Mongolia Growth Group will be investing all its funds in Mongolia itself.
The investment philosophy of MNGGF/YAK is briefly to invest in the infrastructure of Mongolia on the thesis that mining in Mongolia is about to boom, and the infrastructure will grow up around it. Investments to-date by the company are in local real estate and insurance.
The private offering is being done directly by the company. You contact the company via e-mail (details in links below) to state your interest, they'll send you stuff in the mail/e-mail, et cetera. The listing is MNGGF on the pink sheets in the U.S., YAK in Canada. You will find a chart for YAK on Bloomberg.com but not on Yahoo.com.
Mongolia Growth Group's CEO is Harris Kupperman, who runs the closed to new investors hedge fund Praetorian Capital Management LLC (of Florida).
The price of MNGGF has sky-rocketed since its debut and come about halfway back to earth. The stock price is elevating on an investment that is primarily cash (still), a management team, and a play on a country at the precipice of an economic boom. There is a lockup for original investors (who are in at less that $1 per share) ending in August which should be a consideration. You are essentially investing in a stock that is really a hedge fund manager running a hedge fund in Mongolia. I've watched this from the beginning and made failed attempts to try to pick up a pull back that is only met by further private placements at higher prices and periodic promotional meetings (they had two in early May in New York and California). Every private placement to-date has been over-subscribed to-date although they did recently lower the price on this offering.
Mongolian currency itself has appreciated significantly against the dollar in just the last 6 months.
There is more information at the company website here:
A two part interview with Harris Kupperman is here:
Part 1: www.distressed-debt-investing.com/2010/1...
Part 2: www.distressed-debt-investing.com/2010/1...;
Original private placement information at $4 Canadian here:
June 1 newsletter update which may have far more to do with the lowered offering price than a lack of participation:
June 2 update to private offering:
Are you an accredited investor?: Yes, if you meet one of these criteria: a) income greater than $200,000 individually in each of the last two years; b) income greater than $300,000 jointly with spouse in each of the last two years; c) net worth individually or jointly in excess of $1,000,000; d) various possibilities for institutions and private businesses owners which are likely known by those entities;
Disclosures: I am participating in this offering and avidly follow the work of Mongolia Growth Group's CEO Harris Kupperman and MNGGF board member Bill Fleckenstein. I also own shares in ANMCF, a junior gold miner in Peru, whose CEO is also on the board of Mongolia Growth Group. I also own shares of AQSFF, a company for which Mr. Kupperman is a board member. Prior to participation in this private offering, MNGGF/YAK made up .08% of my investment portfolio. After participation in the private offering, MNGGF/YAK will be 3.59% of my investment portfolio. By comparison, AQSFF is currently 1.23% of my investment holdings and ANMCF is currently .86% of my investment holdings.