If Tom Caldwell shouts in the forest, does anyone listen?Why would they. Knowing that a share buy-back program would substantially improve Urbana's returns, make it more attractive to investors and reduce the discount, for the last two years Caldwell has announced buy-back programs. Here's the results:
August 2017 - Intent to purchase 3,965,562 shares - actual shares purchased - zero
August 2018 - Intent to purchase 3,965,572 shares - actual shares purchased - zero
Based on the March 15th figures, a buy-back would generate a guaranteed return of 90% on the amount paid - something no responsible manager would turn down. But the board of Urbana is not responsible - it prioritizes the fee-earning power of the fund for the benefit of Caldwell over the interests of shareholders. Hardly a surprise that non-Caldwell board members have virtually no stake in Urbana. The announced phoney buy-back program is nothing but a deception which further undermines the board's integrity and credibility.