Fisher Funds follows Buffett’s greed versus fear mantra

Fisher Funds is encouraging investors in its Marlin fund to adopt the same attitude as Warren Buffett and “be fearful when others are greedy, and be greedy when others are fearful.”

Marlin Global, which held its annual meeting today, is managed by Fisher Funds and invests in international growth stocks.

It has 28 companies in its portfolio: 10 in Asia, 11 in the US and seven in Europe.

Marlin has been far from immune to the global ravaging of equities, currently trading at 57c – a 43% drop from its $1 price on listing last November.

The net asset value (NAV) has performed better, meaning a sizeable discount between the NAV and the share price has existed for months.

At October 14 the NAV per share was 79c; on the same day the stock closed at 61c.

Marlin announced a share buyback yesterday of up to 5.15 million shares to try to reduce this discount.

Marlin’s portfolio manager Kenneth Applegate, who joined Fisher Funds from the US, says Marlin has sold out of two investments (Jamba and Midland Holdings) and holds several more companies that have executed well and grown earnings but had poor stock price performances.

These included water treatment and environmental solutions company Hyflux, which has a S$1.5 billion order backlog, or more than three years of business; train company Midas Holdings; birth control device design and market company Conceptus; and Greek toy retailer Jumbo.

Marlin has four main investment “themes” that govern its strategy: urbanisation in China driven by the emerging middle class; successful US businesses implementing global strategies; healthcare companies; and leaders in market niches.

The fund has benefited from the New Zealand dollar weakening since its launch.

 

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1 Comment & Question

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Marlin Fund's Asset Backing is irrelevant.
Its share price is the focus for investors.
Obviously investors would have been better advised to invest in the International Growth Fund.
It has dropped 30% since issue last year,despite the NZ dollar weakening,and despite only being partially invested in equities.
However,with the income that Carmel & Hubby are skimming off in management fees as they live in their $8 milion house,why should they worry what happens.
I predict that if Fishers ever manages to claw its way back in regard to any of its various funds,most of its clients will try to scurry for safety by cashing in.
The problem is that the shareholdings held are so illiquid,it will simply depress the market prices.

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