Closed Emergent Capital – 12% loss

Frustratingly changed my mind on Emergent Capital. original post here.

I’m concerned about debt level / lack of liquidity and the fact the company has 9 months (approx) opex on hand.  I wasnt right about my initial belief red falcon had liquidity available – I’d misread the statement.

There is an opportunity with the strategic alternatives process for this to do very well but re-reading this – the possibilities are not all are positive.  It has also now been over 3 months – should have been done.

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New position Emergent Capital EMG 100%-150% upside

Just bought some Emergent Capital at $2.90 a share (yet another truly awful fill) -7.4% portfolio weight EDIT 8/11/2016 *Cut to 3.7%*.  This, in essence is a portfolio of life insurance policies.  It is trading at a market cap of about $76m.  The NAV is $220m so there is the potential for a near tripling in value.

This has been written up on Seeking Alpha and in the Value Investor’s club.  I havent read the Seeking Alpha one (no subscription).

The key facts are: