The U.S. Masters Residential Property Fund (URF.AX) announced they are selling their property portfolio at a discount. As a result, they will pay out URFPA holders at the AUD 100 face value of the units, but ordinary equity owners of URF.AX will only get 22 cents per unit.
I didn't manage to get out in the initial auction and the price is now at 20 cents. I am down AUD 25k for this month and a AUD 15k loss overall at this point. This is my 5th worst trade or investment ever at this point.
However, this is a 10% return from here and so I guess I will hold for the moment. That will turn it into the 10th or 11th worst investment.
This was always a speculative investment and so I didn't invest too much in it. It represented 1.36% of net worth not including our house prior to this announcement. However, there are still some lessons to be learned:
1. When they recently said that they were likely going to sell the portfolio at a discount I should have sold then.
2. I should have invested in the URFPA units all along. I was put off investing in them because of their complicated structure/conditions. But they were safer than URF.AX and had a lot of potential upside.
3. There's often a good reason why the market seems to undervalue an investment. Turns out it didn't undervalue it enough, though!
4. Still, the 5th and 10th best investments have made roughly 10 times what this has lost at the moment.
In other bad news, Domacom settled the dispute for only AUD 2.5 million. That will only last them 6 months...
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