(Spin Digit Editorial):- New York City, New York Apr 21, 2021 (Issuewire.com) – Don Chambers, the shareholder of Firsthand Technology Value Fund (Nasdaq: SVVC) today stated: “The shareholders of Firsthand Technology Value Fund appear to have suffered huge losses despite the raging bull market in US equities. However, SVVC shareholders will apparently soon have an opportunity to rectify this bad situation. And make no doubt about it, the situation as it currently stands appears to be very bad.”
Mr. Chambers continued: “SVVC’s most recent annual report appears to reveal SVVC’s horrible investment performance. The price data on page 24 indicates that the cumulative total return of $10,000 invested in SVVC v. two major equity indices since SVVC’s 2011 inception is as follows:
Invested in NASDAQ Composite: $52,517
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Invested in S&P 500: $34,747
Invested in SVVC: $ 2,190
While the indices are up hundreds of percentage points, SVVC appears to be down 78%. SVVC’s annual report appears to lament that the indices are not appropriate because they are dominated by large, public stocks while SVVC is invested in small, private, technology companies. Let’s evaluate those three excuses.
Micro-caps have made money. The ten-year cumulative return on the iShares Micro-Cap ETF as of 12/31/20 appears to be +170%. Strike 1.
Private venture capital has made money. Private venture capital funds have performed especially well. ILPA reports that ten-year average annual returns in private VC were over +15%! Strike 2.
Tech has thrived. The tech-heavy NASDAQ has trounced the S&P 500. Strike 3.
With those three strikes, SVVC’s management team should be out! And perhaps they will be…”
Mr. Chambers explained: “Last year I submitted a shareholder proposal at SVVC’s annual meeting urging SVVC’s Board to liquidate or terminate the Fund at or nears its NAV. The proposal was overwhelmingly approved by shareholders, but it appears to have been ignored by SVVC.
Here’s the reason for hope: I have submitted a shareholder proposal for the next annual meeting to terminate all investment advisory and management agreements between the Fund and Firsthand Capital Management.
It appears that Firsthand Capital Management has failed the Fund’s shareholders. Chambers notes: “It appears to be in the best interest of all shareholders to terminate the relationship between the Fund and Firsthand Capital Management. “
Mr. Chambers concluded: “I intend to vote in favor of the proposal to terminate all investment advisory and management agreements between the Fund and Firsthand Capital Management. Termination of the existing contract seems to me to be the only path that will allow shareholders to reverse SVVC’s devastating decline.”
Dr. Donald R Chambers
Source :Concerned Firsthand Technology Value Fund (SVVC) Shareholders
This article was originally published by IssueWire. Read the original article here.