Email of the day (2)
"Concerning your mention of Global Uranium Fund, GUR, I was looking late last year for possible Uranium investments and came across GUR. As the composition of the fund looked very interesting I decided to buy. However, it appears that the quantities for purchase on any day are very low, in the order of a few hundreds. Unfortunately I haven't managed to acquire a reasonable holding of the fund.
"I would be interested to hear if others in the collective have experienced the same problem.
"Many thanks for your excellent market insights which have certainly helped boost my portfolio over the years."
David Fuller's view Many thanks for the feedback and congratulations
on seizing your market opportunities over the years.
That
was my fault regarding GUR. In my enthusiasm
for the portfolio holdings, small discount to NAV and reasonable costs, I overlooked
the tiny size of this fund which is only C$29.24m according to Bloomberg. That
is probably due to GUR's disastrously timed launch in August 2007, just after
the uranium price peaked. The fund
will grow in size, I am sure, but buying anytime soon will remain a liquidity
problem without a market setback, for whatever reason.
There
is certainly no point in bidding it to a premium. However one can always cherry
pick among the fund's holdings, which were shown in my technical comment on
GUR this Monday. Most of these are in the Chart Library and a number have been
discussed in recent months. GCL is also
small but approximately three times larger than GUR at the moment. Uranium shares
and funds have had a good run recently, and while I remain very bullish for
the medium to longer term, they are best purchased following setbacks.