The inevitable loss when you pay massive premiums over net asset values. Or you can short the closed end fund for profits.
Two years later, down 12% on CUBA, a closed-end fund investing in Cuba. The closed-end fund traded at a 70% premium to net assets–so the market is efficient all the time?
Ivanhoe and a small investor’s success
With full disclosure I also bought in late 2015 and 2016 at an average price of 65 cents and still holding. Why? Three tier one assets in the Congo and South Africa with a world famous promoter. However, I kept my position 1/2 size unlike the other speculator. These cyclical resource stocks require years of patience.