Cohen wants a miracle

Message ID: 150588
Posted By: stats_for_all
Posted On: 2004-07-02 13:32:00
Subject: Cohen wants a miracle

J. Cohen's RYTVX fund has posted its results as of 2ndQuarter's end.

SCOX represents a 4.9% stake of this fund. This translates to 450K shares. The RYTVX has not liquidated any SCOX, as this is same holding as 3/31/04.

Total assets of the fund have shrunk to 54 MM, down from over 100 in January, and 68 MM on April 1.

The 14 MM shrinkage from April cannot be ascribed to SCOX decay. SCOX Shareprice dropped from 8.59 to 5.84, but this is a paper loss to RYTVX of 1.2 MM. I would speculate most of the remainder 12.8 MM in total assets are due to redemptions by frustrated mutual fund investors. This is not good for Mr. Cohen's management fee, and raises the perennial question, why he is holding his worst performing stock, and redeeming investors by liquidating his better investments.

Please remember that RYTVX only holds 1/4 of the SCOX stock controlled by the Royce Funds, but the other funds are so large that analysis of changes cannot be made from public data.

See Cohen's fund in the Royce family (hint its the red one)
http://www.roycefunds.com/funds/quarterEnd.html

Holding data as of 6/30/04:
http://www.roycefunds.com/funds/technologyValue.html#fundstatistics

Message ID: 150616
Posted By: heimdal31
Posted On: 2004-07-02 14:24:00
Subject: Re: Cohen wants a miracle

<< This is not good for Mr. Cohen's management fee, and raises the perennial question, why he is holding his worst performing stock, and redeeming investors by liquidating his better investments.>>

Yes, a very, very good question. Most of the change in fund size is due to people bailing on Cohen. The fund needs cash to return to those people, so it holds onto the dreck.

I suppose you could argue that he is selling that which has made a profit, but it does seem odd that he seems unwilling to touch the SCOX shares--particularly odd when combined with the fact that in 2004, the other Royce funds have actually increased their SCOX position.

There is some game going on, but I've long since given up trying to understand it.

P.S. Welcome back stats. Are you just here for a brief visit, or are you back for some time?

Message ID: 150628
Posted By: stats_for_all
Posted On: 2004-07-02 14:38:00
Subject: Status report

>> Are you just here for a brief visit, or are you back for some time?<<
A couple of you asked questions regards my state. In my newbie ignorance, I'm not sure it 'tique to respond. Glad some are interested, it makes me feel, well, important.
I'll be in the field until 3rd week of July. A very cool uplink relay through the UC research team and downriver 'net cafe has kept me in the SCOX loop.

I have some stunning observations on a new predatory beetle and its associated parasitic wasp in my ephemeral pools.

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