I am pleased today to announce the launch of Karsan Value Funds (KVF), a long-term oriented, value investment fund that I will manage. The fund will take equity positions in public companies which trade at discounts to their intrinsic values and where downside risk is low compared to upside potential.
As it can take many years for such companies to return to trading at their intrinsic values, the investment horizon of the fund is of a long-term nature. To that end, investors will be discouraged from short-term dispositions of their securities. Investors will also be unable to sell securities to anyone other than the fund, since new investors may not fully understand the partnership’s strategy, and there are certain legal restrictions.
Although the fund will report financial results every quarter, emphasis will be placed on long-term returns, not quarterly results. The fund will likely start out with a capitalization of approximately $400K. As such, using a registered dealer, registering as a dealer, or issuing a prospectus will be prohibitively expensive in the initial year(s). Therefore, the fund’s shares are not currently available to the public.
We look forward to providing more information and publishing the first set of results in the near future. Of course, I am always looking for new ideas. If you have any stocks you favour that you believe may fit the investing profile of the fund described above, I’d be happy to hear about them in the comments section. Happy investing!
