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Fat Prophets Global Contrarian Fund Ltd (FPC)
Fat Prophets Global Contrarian Fund Ltd (ASX: FPC) is an ASX-listed investment company (LIC) managed by Fat Prophets. The fund provides investors with access to a professionally managed, diversified portfolio of global securities based on a 'contrarian' investment philosophy. It aims to identify and invest in undervalued assets across various international markets, seeking to deliver long-term capital growth and income to shareholders.
Market Cap
A$45M
Shares on Issue
N/A
Price Chart
AI Analysis
As a small-cap LIC with a market cap of approximately A$45M, FPC's performance is directly linked to the value of its underlying global portfolio. A key metric for shareholders is the Net Tangible Asset (NTA) backing per share, which is reported monthly. Historically, FPC's share price has often traded at a significant discount to its NTA, reflecting market sentiment and the fund's lower liquidity. Recent performance is heavily influenced by global macroeconomic trends and the success of its contrarian stock picks in sectors that may be out of favour with the broader market, such as energy or materials.
FPC's growth outlook depends entirely on the investment manager's ability to successfully execute its contrarian strategy and identify undervalued global companies poised for a rebound. A key catalyst for shareholder return would be a narrowing of the share price discount to its NTA, which could be driven by strong portfolio performance or corporate actions like a share buy-back. The fund's strategic direction remains focused on uncovering opportunities in unloved sectors, which may benefit if market leadership rotates away from high-growth technology stocks towards value-oriented segments.
Bull Case
- • The potential for the significant discount between the share price and the Net Tangible Asset (NTA) backing to narrow, providing a source of return independent of portfolio performance.
- • A contrarian investment strategy that may outperform during market downturns or when value investing comes back into favour over growth investing.
- • Provides retail investors with a simple, ASX-listed vehicle to gain diversified exposure to a professionally managed portfolio of global equities.
Bear Case
- • The share price discount to NTA may persist or widen, causing shareholder returns to lag the performance of the underlying asset portfolio.
- • As a small and relatively illiquid LIC, the share price can experience high volatility and be difficult to trade without impacting the price.
- • The contrarian investment philosophy can lead to extended periods of underperformance, particularly during strong, momentum-driven bull markets.
Recent Announcements
Update - Notification of buy-back - FPC
Weekly NAV
Notification of cessation of securities - FPC
Update - Notification of buy-back - FPC
Weekly NAV
FAQs
What does FPC do?
FPC is an ASX-listed investment company (LIC) that invests in a portfolio of global stocks. It is managed by Fat Prophets and employs a 'contrarian' investment philosophy, aiming to buy internationally-listed assets that it believes are undervalued by the broader market.
Is FPC a good investment?
FPC can be a compelling investment for those seeking global exposure via a value-oriented, contrarian strategy and who believe the current discount to NTA will narrow. However, risks include the manager's strategy underperforming, the discount to NTA persisting, and low share trading liquidity due to its small size, making it a speculative investment.
What drives FPC's share price?
The primary driver is the performance of its underlying investment portfolio, which is quantified in the monthly Net Tangible Asset (NTA) update. The share price is also significantly influenced by the size of the discount (or premium) to this NTA, investor demand for global equities, and the company's dividend policy.
Key Metrics
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