Another "
corporate action" to consider. Cadence Opportunities Fund attempted an IPO about three years ago, which failed.
I invested in the fund at a second fund-raising.
Now it is again attempting an IPO and attempting to triple funds under
management in the process. I was thinking to buy more shares in the IPO
and even moved money from one account to another to do so, but then had
second thoughts. Don't get me wrong, this is so far a great investment. I
have a 50% internal rate of return on my investment. But after reading
the independent report I became concerned that the price might trade
below the IPO price and so it would be better to wait to buy shares on
market. On the other hand, if the fund keeps performing so strongly, the
increase in the NAV might outweigh an illiquidity discount... But given we have 3% or so of net worth in the fund already, I think I will give it a pass.
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