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Strategies & Market Trends : Thai Funds -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (74)	2/1/1998 8:44:00 AM
From: Polartee	Respond to of 107

TC is also a so-called local fund intended for offshore investors so I would think the same principal can be applied to them as TTF. TC is at an 85% premium to NAV now and perhaps much of the premium could be explained by the difference between foreign and domestic share prices. To know for sure you'd have to get detailed fund information on the holdings and re-calculate the NAV using foreign prices...a lot of work. Since TTF is at a higher 122% premium to NAV and the two funds look very similar, the pricing does seem out of whack. But I can't explain their differing performance in early January. Regards, John

To: peter michaelson who wrote (74)	2/1/1998 4:31:00 PM
From: MCsweet	Read Replies (1) \| Respond to of 107

Peter, I'm not sure about the implications of the foreign-owned versus locally-owned shares. I have been trying to cover as many angles here as I can, since these investments are exotic and I don't want to lose my shirt. (It seems that you and John have covered most, if not all, of the other angles.) If the WEBS Malaysia and Siam Selective also primarily own local shares and price NAV in the same fashion (I'll try to check with the WEBS Malaysia), than it seems to me that the the premiums of TTF and MF truly reflect how overpriced they are. If not, than the shorting strategy may still be sound, but there appears to be some added risk that the premiums on the foreign shares could disappear, hence partially justifying a portion of the premiums. What portion of the premiums might be justifiable, I have no idea. I would guess that TTF is still way overvalued. Of course, I'm no expert analyst here so take everything I say with a grain of salt. MCsweet