Altair Asset Management handing back funds?

Discussion in 'Share Investing Strategies, Theories & Education' started by Frank Manno, 1st Jun, 2017.

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  1. Frank Manno

    Frank Manno Well-Known Member

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    Frank Manno, 1st Jun, 2017
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  2. twisted strategies

    twisted strategies Well-Known Member

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    until that news story , I hadn't known the company/fund manager existed ( no surprise there are hundreds of them ) ..

    it seems to be liquidating it's shares holdings ( which probably includes REITS and some LICs )

    now should YOU be worried ??

    that depends on if you hold many ( or any ) shares ( REITS ,EFTs ,LICs etc. ).

    if the answer is you have hardly any , it MIGHT be taken as a warning to wait ( on the buying ) and intensify your research and education efforts . . in case a big dip is coming shortly .

    re property 'bubble ' is relative , some rural/regional properties are already rather cheap ,

    but shares ( especially banks and financial companies ) and REITs are mainly exposed to high value urban/CBD properties ,

    another point to ponder is the share price v. the business earnings ( and divs. ) compared to the NTA ( the price if they sold everything today )

    say for example MGR halved it's share price ( on written down asset values ) will they halve the divs , or will the extra tax write-offs only shave 25% off the NPAT ?

    now I have been terrible picking this big dip I was all ready for it in 2013 ( expecting a second drop after 2011/2012 ) , but I have been cautiously preparing as I go .

    unfortunately 'cash in the bank ' is losing value ( to inflation) so you probably don't want to be 100% cash for as much as year waiting for the correction , but please be careful when investing , even the usual safe havens are facing headwinds ( and we haven't even crashed yet ).
     
    twisted strategies, 2nd Jun, 2017
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    In simply choosing to exit the market completely and return funds to investors, the fund manager has now created a massive tax headache for many of his clients.

    I would have said to the fund mangaer: just do your job. Let your clients make the decision as to whether to leave the market or hold on to their assets.

    Forcing the decision on your clients and not giving them a choice as to whether they are prepared to cop a massive capital gain right now is a bit off in my opinion.

    It's a little bit different if he took a vote to the unitholders and the majority agreed to his plan - but that's not what the article suggested.

    There does seem to be more to the story anyway:

    Altair boss Philip Parker linked to dispute over mother's shares

    The fund manager who shocked the market by closing his Altair Asset Management funds and returning the cash to investors, citing an imminent property calamity and market correction, is embroiled in a dispute surrounding his mother's share portfolio.

    In a case proceeding through the NSW Supreme Court, Philip Parker, who is Altair's chairman and chief investment officer, is one of the defendants named in an action stemming from claims brought by his elderly mother, Faye Mary Parker and F M Parker Pty Ltd.

    read more ...​

    There is another telling bit of information right at the bottom of the same article:

    Separately, Australian Securities and Investments Commission documents show that Altair Assets director John Milne Hall resigned from the board April 7, 2017. Mr Hall submitted his resignation to Mr Parker, where he told Mr Parker that his reason for resigning was a lack of information.

    "The principal reason for my resignation is that for the past three or more years I have not been provided with sufficient information in relation to the conduct of the business of Altair Assets Ltd to discharge my duty as a non-executive director to monitor the conduct of the company's business and to intervene where appropriate."​

    ... so I think there's a lot going on behind the scenes that aren't apparent from the original article.

    It seems like it may be all smoke and mirrors to distract the market from his real issues.
     
    Simon Hampel, 5th Jun, 2017
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