RE: Market Cap Only 7m13 Dec 2020 16:27
Although I agree with the sentiment of what you're saying I also think or we can speculate that's not the case.
As far as one months increase goes, yes this of course is the caser, it doesn't guarantee the future success..
However, in this kind of business model if the Money managers have proven their worth and success rate then there is no reason why already existing clients won't add more funds to be managed, as well as they are dealing with multimillionaires and Billionaires.
£7m increase in assets under management isn't huge but it is symbolic.
The strategy will be safe through a downturn... Although the markets are up and high on QE and complete over inflated bu**s**t the market is by no means stable... money has to go somewhere... If you have a huge amount of your net worth to invest and a company that has proven its strategy it becomes increasingly attractive to put large amounts in.
The kinds of individuals these guys are working with could double the assets under management over night & again now that the strategy is proven it is and will be more attractive for people looking in...
End of the day... if you are saying you can make me 10/14% that's all well and good, until its been proven its little more than a pipe dream... IF they continued to make 10/14% even through the flash crash in March & feb, how much more attractive is that looking to a HNW office or alike ? Its a proven place to put your dollars. That's the difference between now and 1/2 years ago, and as we've seen by the increase in assets and also others taking positions here... they are proving their worth.
A market crash this winter is looking highly likely.
The fund that requires $50m would 150% the assets under management from one client... As the chairman says in his interview they have spoken to various people who like the sound of this.... Various, more than one. That could happen over night.
10% gain which is more likely to thrive through a market downturn..... there is not many places offering those kinds of gains in a massively risk off environment.
I appreciate the caution but think there is a lot of reason to be optimistic that it won't take 6/12 more months & it'sonly a £7m mcap.
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