Currency / Buybacks / Master Fund extension23 Jun 2024 00:51
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kentio; currency here is usd
gavster-nbc; note your comments on the massive sell/charting, and whilst such aren't particularly relevant to my investment style/focus, one of the stated purposes of the buybacks was to allow greater liquidity, hence ability to sell so whilst i don't think you they were set up cynically, for that or any specific seller, it has achieved that purpose and yes allowed sellers to sell into both the buybacks and market. this hasn't changed/impacted the primary purpose to capture, compound the nav discount into the sp. don't think that sale has any reflection on fair's ongoing viability, just a market decision, selling into a gain, just as you did.
jun-man; the master fund iii extension is pretty much just a procedural thing, and whilst a short question, it isn't a short answer to "p****" - a great word, which as a lover of the lexicon of our language, was new to me, and i had to look up!
when the co was set up, it set up different investment funds, which specific different end dates. master fund ii was june 26, iii is june 28, on the basis that at those dates, capital would be returned to shareholders. the end date is not the same as the ',commitment period' date which is what has been extended here. the commitment period is that in which the fund is still deploying funds (loans) that lenders can call down/use, and as such means fair is still proactively investing anew (lending) rather than managing previously invested cash through interest payments/repayment. as such, it's a positive action, on both their belief in the opportunities in the current market, and their (unencumbered) cash at hand.
to clarify on the realisation (2017) shares, this happened because the master fund ii end date of 2026 was approaching (the commitment period having already expired) and effectively, investors (the company) would, according to the setup rules, be closed, and shareholders investment ended. the realisation shares allowed holders that invested on the original timeframe to realise that investment by the end date, but mostly, allowing the same holders to remain invested on an ongoing basis. a very astute way of delivering on promises, without detriment. in theory, at the end of this extended 'commitment period ' their rules would suggest a realisation ii share, albeit personally i think there will be a motion to change the stock to an ongoing rather than fixed life, with new master funds (each still with fixed lifes to ring fence liabilities) created as a preceeding one expires. as such each funds end commitment period may still prompt a compulsory capital return, but to the company (for ongoing reinvestment) rather than to shareholders.
generally; i'm invested here for the long term, for the income, and as such i'm not overly interested in sp movements. what i do watch, is, is the high income/yield being earned? or is it being massaged by partly returning your own investment? on that count i note that the nav a