No Thanks on SWZ Rights Offering

The Swiss Helvetia Fund, Inc. (ticker: SWZ) is rolling out a new rights offering — and analysts say it’s bad news for shareholders. The offering is expected to slash the fund’s net‑asset value (NAV) by roughly 7.5% per share, affecting all shareholders equally, whether or not they participate. Here’s how it works: SWZ proposed a non‑transferable rights offering priced at about 85% of NAV, followed by a tender offer of 15–30%. Because the NAV drop hits across the board, even shareholders who subscribe for new shares end up with meaningful dilution. That means the rights offering could destroy value rather than create it. Investors take note: while the fund may raise fresh capital or pursue other strategic goals, the immediate effect is a cut to intrinsic value for existing shareholders — a move that many see as hard to justify given current conditions. #SWZ #RightsOffering #NAVDilution #ClosedEndFund #SlimScan #GrowthStocks #CANSLIM