Why fund managers disagree on Pacific Current Group's wind-down prospects

Pacific Current Group keeps buying back shares at a discount to its own net asset value, but managers disagree on whether the company is winding down or continuing as a going concern.

30 Jun 2026 · 3 min read

Multi-boutique asset manager Pacific Current Group has continued to trade at a discount to its own net asset value even as management simplifies the portfolio through asset sales and buy-backs. DS Capital's June 2026 Annual Report noted the company made significant progress during the year simplifying its portfolio through targeted asset sales and substantial share buy-backs, monetising holdings at full prices and using the proceeds to buy back equity at attractive levels.

From wind-down expectations to permanent CEO

Lanyon Investment Fund's September 2025 Quarterly Report set out the original thesis for buying the stock: trading at a discount to its assessment of net asset value, with potential for significant capital returns, or possibly a wind-up or takeover. Oracle Advisory Group took the opposite view three months later, exiting its position in December 2025 after concluding its own wind-down thesis was broken, since the appointment of the long-time acting CEO into a permanent role signalled the company intended to continue operating rather than progressively return capital and dissolve.

We maintain our position in Pacific Current because it continues to trade at a material discount to our conservative estimate of Net Asset Value per share, creating steady per share value accretion for remaining shareholders.

— DS Capital, Annual Report, June 2026

What managers are watching next

With DS Capital's most recent update confirming the buy-back and asset-sale program is continuing to close the gap between the share price and net asset value per share, the diverging views among Lanyon Investment Fund, which bought in on a capital-return and wind-up thesis, and Oracle Advisory Group, which exited once the permanent CEO appointment signalled an ongoing operating strategy, illustrate the key question that remains for the stock: whether Pacific Current continues buying back its own discount indefinitely as a going concern, or whether that capital discipline eventually leads to a takeover or wind-up after all.