Associated Capital Group, Inc.’s Investment in Gabelli Value Plus+ Trust
09 February 2021 - 1:51AM
Business Wire
Our Board Continues to Recommend Stock
Buyback and Reduction of the Management Fee
From the last AGM on July 30, 2020, when Holders voted against
continuing the Trust, to February 1, 2021, the Trust generated
strong absolute investment performance - in US dollar terms, the
NAV increased 35%. Even with the net returns crimped by strong
currency headwinds, the Trust’s NAV had a total return of 29% and a
26% share price return.
AC believed that the right course of action for all shareholders
was not to liquidate the fund in July 2020. That decision
underscores why we are pleased that the fund's performance since
has rewarded all shareholders of both Associated Capital Group and
GVP.
The Gabelli Value Plus+ Trust was launched six years ago in 2015
as a uniquely defensive, absolute return-focused, fund
differentiated by its benchmark agnostic Private Market Value with
a Catalyst™ investment approach. This investment process does not,
nor was it intended to, mirror a broad-based U.S. equity market
index. Reports using a different benchmark were marching to their
own newly created drummer.
Today, the Board of Directors of Associated Capital Group, Inc.
(“AC” or the “Company”) announced that they voted to abstain from
voting at the Gabelli Value Plus+ Trust’s (“GVP” or the “Trust”)
general meeting of shareholders to be held in July 2021. At the
meeting, it is expected that a continuation vote will be put forth
to shareholders. Should the continuation vote be defeated (as it
was in July 2020), shareholders will have the opportunity to vote
on liquidation of the Trust, at which time, Associated Capital
Group will also abstain on the liquidation vote.
Associated Capital Group maintains its view that to have
liquidated GVP as part of the July 30, 2020 AGM, just as GVP’s
holdings were regaining their footing, was shortsighted and AC’s
vote not to liquidate in July was beneficial to all long term
investors. The Board also states again that GVP’s Board should buy
shares at an appropriate discount and that it would be equally
beneficial to all shareholders to reduce the management fee to 50
basis points.
About Associated Capital Group, Inc.
Associated Capital, based in Greenwich Connecticut, is a
diversified global financial services company that provides
alternative investment management through Gabelli & Company
Investment Advisers, Inc. (“GCIA” f/k/a Gabelli Securities, Inc.).
We have also earmarked proprietary capital for our direct
investment business that invests in new and existing businesses.
The direct investment business is developing along three core
pillars: Gabelli Private Equity Partners, LLC (“GPEP”), formed in
August 2017 with $150 million of authorized capital as a
“fund-less” sponsor; the SPAC business (Gabelli special purpose
acquisition vehicles), launched in April 2018; and Gabelli
Principal Strategies Group, LLC (“GPS”) created to pursue strategic
operating initiatives.
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version on businesswire.com: https://www.businesswire.com/news/home/20210208005528/en/
Douglas R. Jamieson CEO & President +1 (203) 629-9595
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