Funds don't put in capital at circa 40 cents without a medium term view of 80 cents and probably ideally $1.20. This is more so for smaller caps as they are inherently more risky so you need to be aiming for bigger gains at the outset. They have to shoot for these returns to make up for the 40% of their trades that end in the red before being closed off. That by the way is a better performing fund getting 6 or 7 positions out of 10 going the right way. They see value at 40 cents no doubt or they place the funds elsewhere pure and simple. WB
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