The Blue Sky Alternative Investments Ltd (ASX:BLA) share price is now down 80%

There seems to be no relief for Blue Sky Alternative Investments Ltd (ASX: BLA) shareholders.

The stock is down 80% since the end of March, when short seller Glaucus started questioning the way the fund manager valued its assets. Blue Sky replied to the allegations of overvaluation and scarce transparency, but couldn’t prevent the tumble.

In an attempt to contain the meltdown, Blue Sky announced on May 7 a review of all its business units to ensure each had scale, was institutional grade, and had a competitive advantage.

Following the review, Blue Sky updated the market on Tuesday, declaring it will wind up the Alliance Fund – its domestic hedge fund vehicle targeting retail Australian clients – and return proceeds to investors. The hedge fund business will now focus solely on institutional investors.

The company – which operates three other divisions in addition to hedge funds: private equity and venture capital, private real estate, and real assets – specifies that the Alliance Fund comprised $49 million of fee-earning assets under management (FEAUM) at March 31, representing less than 1.5% of Blue Sky’s total FEAUM.

However, the news put off investors, and the share price fell 5.5% to $2.34.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.