Firsthand Technology Value Fund’s Captives

New York City, New York May 17, 2021 (Issuewire.com)  - Don Chambers, a shareholder of Firsthand Technology Value Fund (Nasdaq: SVVC) today stated: “Investors are often attracted to SVVC by its large net asset value and the large discount of SVVC’s market price from that net asset value.” Chambers warned that: “There appear to be three unattractive reasons why the discount is large. First, the net asset value is partly based on appraised values of the Fund’s underlying assets rather than market prices. Second, the Fund’s investment advisor has a history of terrible decisions. Third, much of the potential gains are consumed by high fees.” 

Chambers continued”: “Too often wealth managers jockey their way into long-term control of investments in order to feast on the management advisory fees rather than to serve the best interests of their clients. SVVC uses a closed-end structure which means that – absent shareholder activism or opposition by the Board– its lucrative investment management contract can enrich the fund manager forever at the expense of shareholders.” 

Chambers continued: "The poor performance of SVVC is made clear on page 25 of its 2020 annual report where the Fund’s cumulative total return is tracked along with the returns of equity indices.   The Company’s analysis shows the incredible extent of the failure with SVVC dropping more than 78% from its inception through 12/31/20 while equity markets soared with triple-digit gains.  I believe that the investment manager’s decisions and fees are the causes for the massive underperformance.”* 

Chambers has a somber view of SVVC’s long-term future under Firsthand Capital Management, Inc.:  “Unless the Fund liquidates, the ongoing fees will likely take away much, if not all, of potential shareholder income. The value of any financial asset is the present value of the cash that it will eventually payout to its security holders. I believe that SVVC has a history of paying out distributions (or tendering for shares) usually when shareholder activism is involved and – absent successful shareholder activism - I believe that the discount will remain huge.” 

Chambers notes: “I have submitted a binding shareholder proposal for SVVC’s annual meeting scheduled for 5/25/2021.  That proposal calls for the termination of the investment advisory and management agreements between the Fund and Firsthand Capital Management, Inc. I will vote for that proposal because I believe it is the only path towards closing the discount and getting value as a shareholder.”

Don Chambers may be contacted seven days a week at 310-401-4724


*source: https://firsthandtvf.com/docs/form_10k_033021.pdf or Edgar

 

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Concerned Firsthand Technology Value Fund (SVVC) shareholders DonaldRChambers@gmail.com
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Concerned Firsthand Technology Value Fund (SVVC) shareholders

DonaldRChambers@gmail.com

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