Question: For my SMSF, I bought Estia and Isentia some time ago and I am making a 45% loss on each. Should I be patient or take advantage of the recent pull back and buy something else with the now slim proceeds?

Answer: I can’t say I am a fan of either stock. Both have had quite considerable “fall from grace”.

Isentia (ISD) has rallied in the last couple of weeks. Still a little bit short of broker consensus target price of $2.12.

Estia (EHE) is sitting right on valuation, currently $3.05.

My inclination would be to use the rally to cut your losses and start again. If you subsequently decide that you like the stock, you can always get in again.

Question: I see you are offering the Contango Investment Fund but wondered why I would invest in an unproven fund rather than choosing an established performer? What other funds would you recommend for international exposure and good performance?

Answer: In regards to Contango Global Growth Limited:

a) we don’t think that this would be your only offshore investment, as it is a high conviction strategy; and

b) it is a new investment company, but using a proven investment strategy. Please refer to pages 64 to 74 of the Prospectus.

In regards to other funds, are you interested in active or passive management? What geography?

Here is the link to an article we ran a few weeks back on this that outlines some investment options.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.