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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (30180)	3/5/2008 11:26:05 PM
From: Spekulatius	Respond to of 78714

Backcock & Brown hard asset manager in trouble ? I think they are the 2nd largest "hard asset" manager after Macquarie in Australia. finance.yahoo.com Their funds are not doing well: finance.yahoo.com finance.yahoo.com finance.yahoo.com Anybody willing to bet that investors are not lining up to buy more. Most of those funds are leveraged fairly high 3:1+, so i am guessing that higher AUD$ interest rates are not favorable. Now when those funds cannot issue new equity, the initiation fees (which are about 30-40% of BNB revenue) are gone. I also looked at Macquairie's famous infrastructure fund and was not impressed. they are simply resetting NAV by reducing the cap rates for the fair value of their assets. those cap rates appear already fairly low to begin with - around 5% and sometimes as low as 4%. I am guessing that the economy, higher gas prices and such do not matter for traffic growth on their toll roads. BNB.AX blowing up may not matter to most here - but some were discussing BAM. BAM in my opinion is very similar to to BNB except that most of their hard assets funds are not traded as stock units, so the fair value is more of a guess but i don't think that investors right now are lining up to purchase these things.