FAT - Fat Prophets Australia Fund - Aussie Stock Forums

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  1. #1

    Post FAT - Fat Prophets Australia Fund

    Fat may actually start doing something positive.
    Keen on getting some more option under the 10c mark with the $1 expire date in April 2008. A while away.
    Interesting news of late with a buyback of shares and the first dividend since float.
    Thinking a long term investment with this lot.

  2. #2
    Billie Jean is not my lover Realist's Avatar
    Join Date
    Jun 2006

    Default Re: FAT - Fat Prophets Australia Fund

    I do question FAT's purchases.

    Maybe they are a bit like Cramer off CNBC - you'd be better shorting what they say "BUY" and going long on what they say "SELL" to?
    Never buy anything because it has gone up in price.

  3. #3

    Default Re: FAT - Fat Prophets Australia Fund

    I do worry about their position on gold.

  4. #4

    Default Re: FAT - Fat Prophets Australia Fund

    Their an active investors, however they buy so many shares in so many different industries they might as well be a passive investor. We just have to pay a bucket load of money to their directors and management. Fund management companies dont need more than 4 people to invest millions of dollars. Their a stupid company to invest it honestly. You would be alright in a boom market but comparatively speaking you'll be worse off. Their returns would be implicitly caped at some low percentage to the market. I'm not a strong proponent for diversification especially when it is excessive.

    Comparatively, your better off buying an index fund with little or no management. With the regulations placed on listed companies, I dont think the market is where you will find them.

    By the way, they have no many positions, I dont think it really matters what any one particular industry is of concern.


  5. #5

    Default Re: FAT - Fat Prophets Australia Fund

    I do subscribe to their mining/resource reports (only) and they seem to be pretty good, if I follow them completely. And most of their management has geo-tech background/experience, so I feel slightly safer in their mining recommendations than their general sharemarket reports. I have stopped subscribing their general sharemarkets reports already,only the mining/resource one.

    Honorable mention: FXR (buy @ 30cts), BMNDA (buy at 67.5), CVN (buy at at 4.9 cts) and PLA (buy @ 37cts).

    FP tends to be mainly bull in gold and oil IMHO.

  6. #6

    Default Re: FAT - Fat Prophets Australia Fund

    Glad I got out it's one thing to be giving advice but another to go out and buy to put that theory into practice and their ethical line had me totally amazed at their first AGM when I asked why are you not investing in Uranium!! the answer was "It did not meet out ethical standard" and I asked so why are you into banks because I question their ethical way they run their business...no answer! so that day I got out

    cheers laurie

  7. #7

    Default Re: FAT - Fat Prophets Australia Fund

    That's crazy! Ethical standards about uranium? You should have asked them what their ethical standards are on coal as well. That would have been interesting. Here in the hunter we have coal mines so deep that sulphur is spewing out of the ground and into the atmosphere.

  8. #8

    Default Re: FAT - Fat Prophets Australia Fund

    Merricks Capital Special Opportunity Fund has taken over the management of the FAT FUND.

    Fat Fund liquidates most of portfolio
    August 31, 2010


    NTA details are here.

    I've bought into the FAT Fund when it floated in 2005 (poor investment) Anyone successfully sell their holdings? Do you get the NTA price?

    As a comparison, I bought into Mann Investments Series-10 at the same time. The NTA of that fund is $1.64 for an annualised return of 9.55%. I'm not sure how that compares to the ASX or ALL-ORDS over this time, I'm guessing it's about the same.

  9. #9

    Default Re: FAT - Fat Prophets Australia Fund

    A quick look on google finance for the all ords tells me the index was at 4053.1 on December 31st 2005. It's currently at 4791.7.

    Difference is 738.6 points, simplistically I'll divide this by 5 (we are almost at the end of this year). We get 147.7 points on average per year. Dividing the original index points value by 147.7 we get 27.43 etc etc. Dividng 100 by 27.43 equals about 3.64% annual return per year (no compounding etc). So maybe a bit more if you reinvest dividends etc, plus tax benefits of dividends, and other factors to consider. They seem to have outperformed the market a bit, which is always what you look for in a managed fund (why would you pay someone to underperform the index).

    http://www.jochimaker.com/ - Blogging my trades and opinions.

  10. #10

    Default Re: FAT - Fat Prophets Australia Fund

    Oops, hit send a bit early, that all being said, I'd rate FATs as a decent brokerage/advisory but not anything special really. I had a look through their three funds and the only one that seems to be doing alright is their mining and resources fund, everything else seems to have tanked with the market during the GFC.

    http://www.jochimaker.com/ - Blogging my trades and opinions.

  11. #11

    Default Re: FAT - Fat Prophets Australia Fund

    apparently i can sell the Mann Investment Series-10 at NTA price, but the FAT Fund is traded on the ASX and I can only sell it at the market price (Stock code: MER). Which means a loss of 20% on total investment over 5 years.

  12. #12

    Default Re: FAT - Fat Prophets Australia Fund


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