SVVC - Firsthand Technology Value Fund

[prunes]

GSV Capital GSVC -0.20% and Firsthand Technology Value, SVVC +0.22% two funds designed to give retail investors exposure to tech companies before their initial public offering, have lost 37% and 32% of their values, respectively, since Facebook went public.

 

In fact, Firsthand's current share price of $18.29 is less than the amount of cash it has on hand—which was more than $19.33 a share as of Friday, according to fund manager Kevin Landis.

 

That means someone buying a share of Firsthand is in effect getting about $1.04 in cash—and every other company that the fund owns free.

 

Greg Mason, a senior analyst who covers business-development companies at regional brokerage and investment bank Stifel Nicolaus, says it's normal for such funds to trade below the value of their assets—but that he never has seen a fund's price dip below its cash value.

 

http://online.wsj.com/article/SB10001424052702303296604577452630746374136.html?mod=WSJ_hp_mostpop_read

 

No position.

[beerbaron]

I don't get it, the latest 10-Q says there is 47.5M$ in cash and 3.5M shares outstanding. Which give me 13.57$ of cash per share, how to they arrive at the 19.33$ number?

 

BeerBaron

[prunes]

The fund did an equity offering after the close of Q1. It sold 5.06 M shares at $27 per share for total gross proceeds of $137 M. ($137 M + $45 M cash at 3/31) / (3.5 M shares at 3/31 + 5.06 M shares sold post Q1) ~= $21 per share, making ~$19 totally realistic after you back out fees, etc.

 

http://www.firsthandtvf.com/index.php?fuseaction=events.press_042412

http://www.firsthandtvf.com/index.php?fuseaction=events.press_051112

 

The fund disclosed a $19.93 per share cash position in this press release as of May 21: http://www.firsthandtvf.com/index.php?fuseaction=events.press_052112