Is WAM making a play to manage Blue Sky Alternatives Access Fund Ltd (ASX:BAF)?

Blue Sky Alternatives Access Fund Ltd (ASX: BAF) is a listed investment company (LIC) that has been operated by Blue Sky Alternative Investments Ltd (ASX: BLA) since it listed four years ago.

Blue Sky Alternatives Access Fund is aimed at retail investors whilst Blue Sky’s other funds are aimed at institutional investors.

It has been a harrowing year for Blue Sky with restructuring, one-off costs and questions about the value of its assets.

The LIC has been caught up in the drama and Blue Sky has decided to save costs by transferring management of the LIC to Pinnacle Investment Management Group Ltd (ASX: PNI). The change could see it invest in additional assets which Blue Sky currently doesn’t.

However, the AFR’s Street Talk understands that Wilson Asset Management (WAM) has made a play to take management of the Blue Sky LIC, with it already being a shareholder in the fund.

WAM runs a number of other successful LICs such as WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX). Street Talk understands that WAM has approached the Blue Sky representatives with a proposal.

Geoff Wilson said “no comment” when contacted by the AFR about this development.

Foolish takeaway

I was once interested in investing in the Blue Sky LIC, but I never ended up investing in it. The Blue Sky issues made me take it off my watchlist. However, Pinnacle as a manager would be interesting and I’d be very interested if WAM were running it.

Having a well-known manager with a proven long-term track record running it could be compelling. After all, water assets and private equity are potentially attractive asset classes.

Whilst the Blue Sky LIC may offer a decent dividend yield, for now I'd invest in this top income share.

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Motley Fool contributor Tristan Harrison 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.

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