Public exchange fund

p.260, CFAI vol. 2 The fund needs to comprise a 20% exposure to other illiquid investments. Where does the money come from? OUTRIGHT SALE of some of the low-basis stocks? That doesn’t sound right to me. - sticky

is it from cost-basis chapter, and one of the methods is to exchange low-cost basis stock for shares of exchange fund?

yes. p.260, CFAI vol 2 - sticky

good question :slight_smile: additional cash payment of investors ? Leverage ?