Funds buy back shares
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- October
- 20
This year’s downturn in the stock and real estate markets has been particulary brutal for Sam Lieber.
Lieber invested in hotel, office and other real estate companies as the portfolio manager of the Alpine Global Premiere Properties Fund in Purchase. But with those real-estate sectors doing poorly as investors worry about the potental impact of the credit crunch and a recession, the fund is down 59 percent this year, worse than a 25 percent drop for its peers, according to Bloomberg News.
Managers said today that they have responded to the steep selloff by buying back more than 279,000 shares of the closed-end fund.
“Recently, we’ve seen extreme pessimism overtake the markets and our fund became irrationally discounted,” Lieber said. ”(The fund) itself became one of the best opportunities for investment as we saw a sound strategy steeply discounted in the market. The fund took advantage of this severe undervaluation, buying back its own shares.â€
The Alpine Total Dynamic Dividend Fund, also managed at the same investment company in Purchase, said it has bought back more than 112,000 shares. The fund, which invests in dividend paying companies in the United States and internationally, is down 50 percent this year.
“Whenever irrational extremes create tremendous value in our closed-ends, the funds are going to be in the open market buying back shares,†said Steve Lieber, Alpine’s chief investment officer.
This entry was posted
on Monday, October 20th, 2008 at 1:25 pm by Jay Loomis.
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