One such situation is the recent listing on London Stock Exchange of Fondul Proprietatea. FP is a closed end fund that trades on the Bucharest Stock exchange. The fund was created in 2005 as way to compensate Romanians that lost property during the previous communist regime. Victims were given shares in lieu of compensation and shares began trading on the exchange in 2011. The shares have historically traded at a discount to net asset value. The current discount is 27.61%. The fund manager is Franklin Templeton Group and has been buying back shares over time as a way to narrow the discount to NAV as shown on the most recent fund fact sheet.
The listing of Global Depository Receipts on the London Stock Exchange in late April now gives smaller investors in the US a way to participate as the fund manager continues to seek to buyback shares and lower the discount.
I like this fund as it gives me a way to play an emerging Eastern European market at only .70 cents on the dollar. Top Hedge Fund manager Paul Singer who runs Elliott Associates has upped his firms stake in FP to 20% and said the following about the fund: