Our investment thesis on BAF was based on our analysis that we were buying a suite of assets that were undervalued on many fronts.
After the manager of BAF had all assets reviewed by independent auditors, we took the view that the valuation outcomes were “scorched earth”.
That view appears to be validated as over the past 12-months as BAF has sold assets at prices that far exceeded the auditor’s valuations.
With almost 50% of the BAF book of assets either being in cash, liquid assets or currently in a sales process, our view is the approx. 25% discount to NTA is applying too much of a manager discount.
It is our thesis that there are many catalysts that will close the value gap between the current price of BAF & their reported NTA.