The Megurit housing fund has seen its stocks tumble in the three months since it went public the Kikar Hashabbat Hebrew news website reported on Sunday.
Stock prices fell 12% before the markets closed Sunday, and share prices have seen a slump of 14.2% over the past week.
Kupat Ha’ir, one of the largest haredi charities in Israel, invested 60 million shekels ($15.6 million), or 24.9% of the fund’s value. It has lost 6 million shekels ($1.5 million) to date. The burial society invested 40 million shekels ($10.4 million) and has lost million shekels to date.
According to T.O.T. Private Consulting, non-haredi institutions have also lost money after investing in the Megurit fund.
The organization ‘Excellence’ and the Jewish National Fund have lost 4 million shekels each.
The Megurit fund announced Sunday morning that it would buy back many of the shares it sold off three months ago.
The repurchases are meant to strengthen the value of the shares by reducing the percentage that is held by the public.
The Megurit fund is the first of its kind in Israel. It brings together smaller investors to pool larger amounts of money together and jointly purchase land around the country.
the fund administers the land until it reaches profitability.