Shares in the Fonterra Shareholders Fund fell more than 3% on Monday after Fonterra farmer shareholders flooded its offer to buy back "wet" or production-related shares.
Farmers requested it to buy nearly $600 million worth of shares when the maximum Fonterra was prepared to buy was $475 million worth.
As a result, each farmer will be able to sell Fonterra at just under 80% of the amount they wanted.
Fund manager at Mint Asset Management Shane Solly says the buyback outcome would have been a trigger for some investors to sell the fund.
He says its been a tough haul for Fonterra since listing, and some analysts he says believe the stock has held up remarkably well despite challenges like the drought and the cost of entering Asian markets.