The Amati effect - the opportunity8 Apr 2024 21:41
Amati sold, it's not because of redemptions. That's because the shares are not held in the open-ended fund but in the permanent capital VCT compliant AIM investment trust, AMAT.
Re: the strategic review announced by AMAT last month it's a good thing in my opinion. That's because the trust has to operate under v onerous restrictions in order to preserve VCT status. For instance, they cannot buy shares in the open market. Purchases can only be made at an IPO or at a subsequent placing, which means they cannot buy more of a share simply because the price has fallen and they reckon it's good value. Similarly, they cannot buy a share they have previously sold. Imagine investing in that way - it's hard enough making money on AIM, without having to navigate these VCT compliant handicaps additionally. I'm therefore not in the least surprised that AMAT has been such a poor performer ; this financial instrument gives rise to a sparkling unique opportunity to get in after all the hard work (£) has been done but they can’t buy back.