Everyone keeps asking "when are they going to use their money to buy good businesses at low values?" For one its not correct to say that the only thing they own is BTI - its tracking slowly down and is about 84% - they have spent and are committed since listing to EU1044M in investment. Secondly, the majority of their investments - apart from the EU 100M or so headed for CHINA( DESTINATION UNKNOWN) is very hedge fundish in style and positioning.( Its easy to see where the diamond tailings fit in.The correlation between investments currently held must be VERY LOW - low risk. So this is clearly setting a course for the present to become a "public( as opposed to private) equity offering" OR to describe it differently ( not used in good company) "a fund of funds"? I can't really think of a parity situation? Key things will be - what is the cost of investing - longer term. RUPERT and Co know that high management costs kill returns and to make this fly you have to offer real returns - G7 inflation + 3-5% ?? Other views?
Will they sell - or will they just hang in there and collect and reinvest the income? ( At least for the next 2 or so years??)If they were going to sell I THINK the last year would have been a pretty good time to unload - given the defensive nature of the stock. I 'gree on the management fees issue - the fees are typically what you would pay in a hedge fund - or close to it. So in the context of one's overall asset(s) allocation this is "a 5th asset class" methinks - much like a low correlating hedge fund invt in a balanced fund etc etc The latest sens spells out the investments - incl Trilinear.The MOST interesting ( for me )is the China investment - what will it be - agriculture/tech??