Why Shares of Blue Sky Alternative Investments Have Sunk so Drastically

The month of April has been tough for Blue Sky Alternative Investments Ltd [ASX:BLA]. Today shows no signs of a positive relief for their share value, as they continue to go through a rough patch.

Yesterday following the release of a market update, their shares fell by 23%, continuing to fall another 3% today.

Blue Sky’s decline stems from a negative market sentiment.

Market and shareholder expectations have since dropped due to the company’s overall transparency and disclosure.

Blue Sky alternatives is an investment fund which specialises in private equity. Their clients are mainly associated in retail and institutional businesses.

They have recently addressed its plundering share value and their plan of action to counter it.

Blue Sky’s state of decline and its plans to counter

In their market update, Blue Sky revealed that they will commission an independent review of their overall business processes and financial reporting.

They want to create further transparency amongst investors by putting forward a set of initiatives.

These initiatives consist of differentiated and transparent fees, while also providing extensive breakdowns of assets under management that act within a fee-earnings platform.

However, the recent negative decline has caused the company to believe that it may not be able to make any new investments in a short-term period.

To counter the negative effects, Blue Sky will downgrade its overall Fee-earning guidance over the course of 2018.

Blue sky believe that the company is expected to be constrained from following through with new investments that acts outside of the businesses mandatory structure.

Blue Sky Chairman, John Kain, acknowledges the company’s short comings, but believes the company can ultimately improve its value to shareholders in the long run.


Ryan Clarkson-Ledward,
For Markets & Money

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Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:

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