More on iCapital Transparent Issue

Had some time this morning. I thought I gave iCapital Annual Report a read. ICAPITAL.BIZ BERHAD

If you click on that link, there is a pdf file of that report attached.

See end of page 5. It made the following statement.

• For the financial year ending 31 May 2008, your Fund sold its entire holdings in United Malacca and UMW Holdings. In addition, it sold partially its holdings of Boustead Holdings, Integrax, Lion Diversified, Petronas Dagangan and Poh Kong. These sales generated realised gains of RM36.726 million with a cost of RM25.684 million. The sales were made as your Fund took the view that the risk-reward ratio in holding on was not favourable.

Now from iCapital perspective as a fund manager, I do understand their way of thinking and perhaps their reasoning to dispose their shares.

However, if you had followed the blog postings, iCaptal Addresses the Transparent Issue! and Feedback on iCapital's Addressing Of Its Transparent Issue!, I am rather baffled.

I was forwarded their stock recommendation list as of July 2008 and I was amazed to read the following recommendations on the stocks that iCapital said it had sold.

1. United Malacca carried a HOLD recommendation.

2. UMW too carried a HOLD recommendation.

3. Boustead Holdings carries a Buy/Hold recommendation.

4. Integrax carries a Hold recommendation.

5. Lion Doversified carries a Buy/Hold recommendation.

6. Petronas Dagangan carries a Buy/Hold recommendation.

7. Poh Kong too carries a Buy/Hold recommendation.

So, it sold 1 & 2 but item 3-7 was most interesting for me.

The investment advisory reckons that these stocks stocks are worth a buy/hold but the fund management from this very same company reckons that are justifiable reasoning for the fund to dispose some of their stock holding! Don't you think that this is so contradictory?

Macam Mana Ni?

And I am so confused on the buy/hold recommendation? So rather vague isn't it? Why can't it give a straight forward recommendation? Call a buy a buy and a hold a hold, yes?