| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 16.40 | 39900 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Alternative Liquidity Fund Limited (ALF.L) is a Guernsey-domiciled closed-end equity mutual fund managed by Warana Capital, LLC. Listed on the London Stock Exchange, the fund primarily invests in U.S. public equities across diversified sectors, aiming to provide liquidity solutions and capital appreciation. Operating within the asset management industry under the broader financial services sector, the fund was established in 2015 and focuses on opportunistic investments in undervalued or high-growth public companies. With a market capitalization of approximately $8.77 million, Alternative Liquidity Fund Limited caters to investors seeking exposure to U.S. equities through a managed fund structure. Despite its niche focus, the fund's performance has been challenged by negative revenue and net income, reflecting broader market volatility and investment headwinds. Its low beta (0.17) suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors.
Alternative Liquidity Fund Limited presents a high-risk, niche investment opportunity within the asset management space. The fund's negative revenue (-$2.41 million) and net income (-$2.69 million) for the fiscal year ending June 2024 highlight significant operational challenges, likely due to underperforming equity investments or unfavorable market conditions. With no dividends and negative diluted EPS (-$0.0183), income-seeking investors may find limited appeal. However, its low beta indicates lower market correlation, which could be attractive for portfolio diversification. The fund's small market cap and lack of debt suggest minimal financial leverage risk, but its negative operating cash flow (-$698,260) raises liquidity concerns. Investors should weigh its niche strategy against its recent underperformance and the competitive landscape of U.S. equity-focused funds.
Alternative Liquidity Fund Limited operates in a highly competitive asset management industry dominated by larger, more diversified funds with stronger track records. Its primary competitive disadvantage lies in its small scale and lack of profitability, which limits its ability to attract institutional capital or compete on fee structures. The fund's focus on U.S. equities across diversified sectors lacks specialization, making it difficult to differentiate from broader index funds or actively managed alternatives. Its Guernsey domicile may offer tax efficiencies for certain investors but reduces visibility in major financial markets. The fund's low beta could be a differentiating factor for risk-averse investors, but its negative performance metrics overshadow this potential advantage. Without a clear investment thesis or sector focus, the fund struggles to carve out a defensible niche in a market saturated with passive and active equity strategies. Its reliance on Warana Capital's management introduces key-person risk, further complicating its competitive positioning.