Disclaimer

Disclaimer - I'm too dumb to be an expert thus all the contents of this blog are just my random thoughts and may be incomplete or contain any informational errors. It is certainly not recommendation to buy or sell. You'll be responsible for your own decision. Please consult your investment consultants before making any investment decision. Also the author may or may not have position in the counters that mentioned in this blog.

Monday 8 September 2014

IFCAMSC - God's trade by Brahmal Vasudevan!


Chart : IFCAMSC daily chart as of Sep 8 2014 (source: ChartNexus)

Mr. Brahmal Vasudevan (BV), the founder of Creador, a private equity firm that focus on Southeast Asia region and India. From the main page of the website, it is stated there : Creador is a private equity firm focused on long-term investments in growth-oriented businesses in Indonesia, Malaysia, Singapore and India

BV emerged as IFCAMSC substantial shareholders on Aug 26 2014 with direct holding of 10 Million shares and indirect holding of 15 Million shares. On that day, the highest price and lowest price traded was 37 sen and 33 sen and it closed at 35 sen. But mere 4 trading days later, he disposed 11.5 Million shares or close to half of his holding on Sep 2 2014. On that day, the counter traded the highest at 52 sen and the lowest at 47.5 sen and closed at 49.5 sen. Since he didn't disclosed his average entry price and exit price so I'm just going for the average price of the day to estimate his entry and exit price. On Aug 26, highest was 37 sen and lowest was 33 sen so average 35 sen which will be his entry price. On Sep 2, highest was 52 sen and lowest was 47.5 sen so average is 49.75 sen which will be his exit price. So in just four trading days, he made roughly RM 1,659,375 (0.4975 - 0.35 * 11.25 Million shares). With some 13.75 Million shares left, his paper gain on his current holding based on today closing price of 45.5 sen is another RM 1.44 Million

In just  4 trading days , he closed his position of 11.25 Million shares with some 42 % gain. This is one hell of a contra trade. Apparently fund manager doesn't necessary aim for long term after all. But with 42% return in just 4 trading days, can anyone blame him for taking his profit? Certainly not. But for those that bought the shares after the star fund manager emerged and thought that he is here for the long term, it could be an unpleasant surprise. 

This is one godly trade that his clients will certainly hope for. It will be great for his clients if the trade is for the company's fund instead of his personal capacity. Anyway, job well done for BV!!!

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