GLOBAL MASTERS FUND LIMITED (GFL:ASX)
Holding Period: 2.2yrs
Global Masters Fund Limited (GFL) was an ASX listed investment company (internally managed). GFL’s only assets were Berkshire Hathaway shares and Cash. Between 2008 and 2010, we acquired a 5.05% substantial interest in GFL at a +25% discount to the readily ascertainable net asset value. In a letter dated 1 February 2010 we called for a liquidation of the company as the market capitalisation was less than AUD 10M and in our view GFL lacked the required scale to provide investors with a cost effective exposure to Berkshire Hathaway – especially after the recent stock split of the “B” Shares post the Burlington Northern Sante Fe railway acquisition. The Company held an EGM on 22 April 2010 where it offered to undertake an “equal access” buy back at NTA less 5% based on 30 April 2010 Net Asset Value. The Fund exited its holding on 21 June 2010 delivering an IRR of +17.6% per annum over the +2 years holding period.