United Development Funding IV fka UDFI

[Jh5142]

UDFI is a fairly large position for me. In some ways I’m surprised it is trading this low. But then again, I have felt that same way for the last 18 months. I felt the exact same way when it was $2-$3.

It’s remarkable to me that Bass was working on a fund to buy UDF’s assets distressed in September 2015. The whole thing looks bad for him unless there are massive loan losses in the portfolio, which doeesn’t appear to be the case.

The loan collateral value is up so much in the last 3 years, its possible that the BV of the fund is around the last published number. Of course, that could be way off base. It would be ironic if Greenlaw has Bass right where he wants him and we are going to witness some sweet revenge soon.

Release of the financials is the key, for sure.