Post by
Obscure1 on Dec 23, 2021 4:13pm
The leverage factor
The IR person at Middlefield called me back this afternoon and answered a few questions.
The fund was designed to have a leverage factor of 1.8. That means if ENB shares go up (or down) 1%, then the NAV of ENS should go up (or down) 1.8% plus or minus, depending upon variables such as the size of their cash position and options outstanding.
BTW, the ENS fund is their fastest growing and now their biggest fund which is held primarily by retail holders.
Oh boy, this is going to be fun.
Comment by
pjn0987654321 on Dec 24, 2021 1:36pm
I'd be interested to see the calculation. How do you go from leverage 1.8 to $13.149?
Comment by
PileOfShit on Dec 27, 2021 7:12pm
This post has been removed in accordance with Community Policy
Comment by
Obscure1 on Dec 27, 2021 7:59pm
PoS: Please check your Inbox
Comment by
Experienced on Dec 28, 2021 8:24am
So who cares what the NAV is or how it is calculated since we are trading the SP of ENS not the NAV?
Comment by
PileOfShit on Dec 28, 2021 4:18pm
This post has been removed in accordance with Community Policy
Comment by
Experienced on Dec 28, 2021 9:19pm
Thanks So the takeaway is that when there is a small premium to NAV, historically, this is a good time to buy.