{"id":414304,"date":"2021-01-13T11:55:34","date_gmt":"2021-01-13T16:55:34","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=414304"},"modified":"2021-01-13T11:55:34","modified_gmt":"2021-01-13T16:55:34","slug":"dolphin-seeks-fsd-nav-returned-to-shareholders-submits-2021-binding-proposal-to-terminate-investment-agreements","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/dolphin-seeks-fsd-nav-returned-to-shareholders-submits-2021-binding-proposal-to-terminate-investment-agreements\/","title":{"rendered":"Dolphin Seeks FSD NAV Returned to Shareholders\u2014Submits 2021 Binding Proposal to Terminate Investment Agreements"},"content":{"rendered":"
\n

\n
\n -13.9% FYE 2020 NAV Discount<\/em>
\n <\/strong>
\n \n <\/p>\n

\n
\n -30% 10+ Year Market Underperformance<\/em>
\n <\/strong>\n <\/p>\n

\n
\n FSD\u2019s Actions Adversarial to Shareholders<\/em>
\n <\/strong>\n <\/p>\n

GREENWICH, Conn., Jan. 13, 2021 (GLOBE NEWSWIRE) — Dolphin Limited Partnership I, L.P. (\u201cDolphin\u201d), a sizable multi-year First Trust High Income Long\/Short Fund (NYSE Ticker Symbol: FSD) shareholder, today announced that it had sent FSD a binding proposal to terminate all Investment Advisory and Management Agreements as soon as legally permitted pursuant to section 15(a)(3) of the Investment Company Act of 1940 (the \u201cProposal\u201d) for the 2021 Annual Shareholder\u2019s Meeting (the \u201c2021 Meeting\u201d).<\/strong> Dolphin believes that a favorable vote would either cause a prompt and orderly liquidation with Net Asset Value (\u201cNAV\u201d) returned to shareholders (as has occurred with other closed-end funds) or a positive transaction\/restructuring (subject to another favorable shareholder vote) to close the persistent NAV discount and promote sustainable attractive distributions based on earnings (net investment income\u2212\u201cNII\u201d), rather than Return of Capital (\u201cROC\u201d).1,<\/sup>2<\/sup> As of January 12, 2021, FSD\u2019s per share NAV and market prices were $16.49 and $14.71, respectively.<\/p>\n

\n FSD\u2019S NII IMPLODED AND THE NAV DISCOUNT EXPLODED<\/strong>
\n
\n ROC per share was $0.00 for FY 2011 and $0.41 for FY 2020<\/strong>\n <\/p>\n\n\n\n\n
\u00a0<\/td>\n\n FYE 2011<\/strong>\n <\/td>\n\n FYE 2020<\/strong>\n <\/td>\n\n Percent <\/strong>
\n
\n Change <\/strong>\n <\/td>\n<\/tr>\n
\n NII per share<\/strong>
\n
\n
\n 12<\/strong>
\n <\/sup>
\n <\/strong>\n <\/td>\n		\n $<\/strong>
\n 1.47<\/strong>\n <\/td>\n		\n $<\/strong>
\n 0.91<\/strong>\n <\/td>\n		\n -38<\/strong>
\n %<\/strong>\n <\/td>\n<\/tr>\n
\n NAV premium\/discount<\/strong>
\n
\n
\n 11<\/strong>
\n <\/sup>
\n <\/strong>\n <\/td>\n		\n +2.25<\/strong>
\n %<\/strong>\n <\/td>\n		\n -13.9<\/strong>
\n %<\/strong>\n <\/td>\n		\n -718<\/strong>
\n %<\/strong>\n <\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n
\n
\n FSD SHAREHOLDERS CAN DO MUCH BETTER<\/u>
\n <\/strong><\/p>\n

-13.9% FYE 2020 NAV Discount<\/strong>
\n
\n
\n 11<\/strong>
\n <\/sup>
\n <\/strong><\/p>\n

–<\/strong>
\n 278% 1-Year Market Underperformance*<\/strong><\/p>\n

-30% 10+ Years Average Annual Market Underperformance*<\/strong><\/p>\n

-$111.3 million accumulated distributable earnings loss*<\/strong><\/p>\n

5.5% pretax NII yield on NAV is not compelling<\/strong>
\n
\n 12<\/strong>
\n <\/sup><\/p>\n

Adversarial Board actions to shareholders<\/strong><\/p>\n

Trustees and Executive Officers held only 8,528 shares<\/strong>
\n
\n 5<\/strong>
\n <\/sup><\/p>\n

*Refers to FSD\u2019s market performance vs. self-selected peer index in the October 31, 2020 table herein. 10+ Years refers to September 27, 2010, FSD\u2019s inception.<\/strong>\n <\/td>\n<\/tr>\n<\/table>\n

While FSD has not disseminated its 2021 record and meeting dates, the rushed 2020 Annual Shareholder\u2019s Meeting (the \u201c2020 Meeting\u201d) was held March 9th<\/sup>.4<\/sup><\/p>\n\n\n
\n

NEARLY 52% DID NOT VOTE AT THE 2020 MEETING<\/strong>
\n
\n
\n 3<\/strong>
\n <\/sup>
\n <\/strong>
\n
\n SHAREHOLDERS SHOULD HAVE VOTING POWER OF THEIR SHARES <\/strong><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Dolphin believes its binding<\/strong> 2021 Proposal is compelling as: (i) FSD significantly underperformed for 1-year and 10+ years in rising and declining high yield markets; (ii) FSD is not properly structured; (iii) FSD\u2019s temporary efforts to close the NAV discount failed; and (iv) Board actions have been adversarial to its shareholders.<\/p>\n\n\n
\n

DOLPHIN ADVOCATES TERMINATING ALL INVESTMENT AGREEMENTS\u2014DOLPHIN BELIEVES THIS WOULD CAUSE A LIQUIDATION AND NAV RETURNED TO SHAREHOLDERS<\/strong>
\n
\n 1, 2<\/strong>
\n <\/sup><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

I.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0-30% 10+ YEARS AVERAGE ANNUAL MARKET UNDERPERFORMANCE <\/strong><\/p>\n