The Fund accumulated more IDT, which represents 3.79% of the Fund’s net assets, at prices approaching the company’s cash in the bank. IDT is a model of the Fund’s “special
situations” strategy, where some qualities we normally seek are lacking, offset by other
factors such as extreme investor dissatisfaction. We now own an investment in a cash
generating calling card business (selling nearly 400 million cards per year), the patent
portfolio of subsidiary Net2Phone (the creator of VOIP), and a handful of interesting, but
money-losing start-ups for near zero cost. IDT’s Board, led by owner/Chairman Howard
Jonas, seems to concur with our analysis given previous buy-backs and a recently announced authorization to repurchase roughly 25% of remaining shares.
situations” strategy, where some qualities we normally seek are lacking, offset by other
factors such as extreme investor dissatisfaction. We now own an investment in a cash
generating calling card business (selling nearly 400 million cards per year), the patent
portfolio of subsidiary Net2Phone (the creator of VOIP), and a handful of interesting, but
money-losing start-ups for near zero cost. IDT’s Board, led by owner/Chairman Howard
Jonas, seems to concur with our analysis given previous buy-backs and a recently announced authorization to repurchase roughly 25% of remaining shares.
