Some people detest investing in small caps. They believe that small caps won’t do well compare to large cap. But how come they might be interested in investing in a basket of micro-caps.
The Discount to NAV Makes People Question the Valuation
Dan also tabulated the market cap-weighted discount to NAV for the listed PE Funds:
The funds, as a market-cap weighted aggregate, currently trades at 70 cents to a dollar.
Normally, you would look at that and be very interested to invest because if you buy the fund at 70 cents and they liquidate the fund today, assuming they can sell all the underlying, you get back 1 dollar.
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