SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Thai Funds
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: J. Lobo who wrote (11)9/17/1997 12:26:00 PM
From: Polartee   of 107
 
J. Lobo:

Yes, I really do have a short position in both TC and TTF. I shorted through Green Line Investor Services in Canada. I tried to do it through Brown and Co. in Boston as well but they could not get any shares for me. Maybe someone knows where we can find the short interest in stocks on the net - it may be there is a high short position which is making it hard to get supply. This could also be a reason for the high premium to NAV.

Yes, there is the possibility that the Premium to NAV could go up and with it the price (of course the price could fall even if the premium went up if the NAV fell by enough). This is one risk in the position. But I believe that because of the Thai econ/financial situation and the accompanying bad press, investors will shy away from these funds and cause the premium to fall. Current holders of the funds when they see the premium they could get by selling now may wish to do so and invest in an open end South East Asian fund or another closed end in the region like Templeton Dragon Fund which I believe is at a discount to NAV. If the Thai situation improves, other countries in the region will benefit too (just as they have suffered on the downswing) and benefit without the risk of seeing an erosion of a high fund premium. This also suggests a hedge, albeit an imperfect one, by going long on other funds in the region. It's not a hedging strategy that I plan to use.

I don't perceive nearly as much risk in this short position as you do. I'm betting/investing on the belief that pricing will become rational once again rather than becoming more irrational. I think and hope that the point of maximum irrationality in pricing this fund has passed.

Yesterday, both TC and TTF hit new 52 week lows on the NYSE.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News