Ivey Publishing
Alpha Investments
Product Number:
9A98N025
Publication Date:
11/25/1998
Revised Date:
02/02/2010
Length:
10 pages
Product Type:
Case
Source:
Ivey
An analyst with Alpha Investments is examining the possibility of recommending that shares in the closed end mutual fund, Growth Investment, be included in the portfolio holdings of managed funds run by Alpha. Growth Investment was a dual-purpose fund with both preferred shares and common shares. The common shares were selling at a discount of over 20 per cent to their underlying net asset value. This seemed to represent a significant investment opportunity for Alpha, especially because Growth Investment had a wind-up date in approximately three years at which time the common shares would be redeemed at full net asset value (less any wind-up costs). Before making the recommendation to buy, however, the analyst wanted to be sure that she understood all the risks as well as the opportunities of the investment.
Issues:
Disciplines:
Finance
Industries:
Finance and Insurance
Setting:
Canada, 1989
Intended Audience:
MBA/Postgraduate
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
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