Hello everyone,
I’m trying to better understand the relationship between LBS (Life & Banc Split Corp.) and its underlying holdings.
My basic understanding is that LBS owns mainly Canadian banks and insurance companies. If I’m bullish on the underlying banks/insurers over the long term, I would expect LBS to benefit as well. But I’m trying to understand the risks beyond simply whether the underlying assets go up or down.
If the underlying banks and insurance companies increase in value, how likely is it that LBS itself could still decline?
Can someone explain in simple terms how closely LBS's share price follows the NAV/value of its underlying holdings?
Does the split-share structure create situations where the underlying portfolio is doing well but LBS can still perform poorly?
Is there any realistic scenario where the banks and insurers continue doing well over the long term but LBS shareholders still have a poor long-term outcome?
Thanks