Do I wait for NCAV exactly?

Many sell between 0.9-1.0x NCAV to avoid round-trip risk once the discount closes.

What if the catalyst slips?

Set a drop-dead date; if deadlines move without new evidence, trim or exit.

Only if the business quality and reinvestment runway improve materially—otherwise recycle into fresher discounts.

Clear exit triggers for net-nets—NCAV parity, catalyst deadlines, dilution, and fundamental breaks.

Published: 2026-02-08

net-net exits risk catalysts portfolio-management

Value reached: Price crosses 0.9-1.0x adjusted NCAV or NTAV.
Catalyst done: Tender, liquidation payment, or asset sale executed—take cash and move on.
Time stop: Pre-set holding window (6-18 months). If nothing happens, exit or shrink size.
Deterioration: New dilution, leverage spike, working-capital quality drop, or governance blow-ups.

Scale out in tranches near target value.
After tenders, reassess post-deal float and liquidity before holding residual.
Avoid anchoring—if the thesis changed, reset the position to zero and re-underwrite.

This guide is educational and not investment advice. Do your own research or consult a professional adviser.

Do I wait for NCAV exactly?

Many sell between 0.9-1.0x NCAV to avoid round-trip risk once the discount closes.
What if the catalyst slips?

Set a drop-dead date; if deadlines move without new evidence, trim or exit.
Should I hold for compounders?

Only if the business quality and reinvestment runway improve materially—otherwise recycle into fresher discounts.