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Elderstreet

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
Karellan
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Re: Elderstreet

#478877

Postby Karellan » February 6th, 2022, 10:25 am

Sounds like you have done well UncleEbenezer.

[quote="Boots"
I can only comment on what I have seen during my ownership - no special dividends, just a steady 7% (on my net cost) and a reasonably steady asset price. Not great, but OK.

I may be setting the bar too low, but it passes my tests at the moment.[/quote]

I tend to agree with you as it is not certainly a disaster , its stuffed with technology and manufacturing shares which I guess will have a higher failure rate thereby dampening performance. I dont think that it takes many additional failures in a portfolio to do that. Prior to us buying the share price was a lot higher and I think they paid out special dividends of about 25p over a year or two. There was a good disposal(s) made of mainly a military switchgear company make in 2014. For me Elderstreet is a good diversifier as I dont want everything in one basket.

I have let some of my earlier technology VCTs go. It must be hard for investment professionals to deal with concepts they do not fully understand promoted by people who may not be greatly interested in the return. I was surprised once to see a spelling mistake in the type of product in a company report. I recall the eternal promises of jam soon to come. Somebody else can develop a better one and the investment may have been fogged by trendy euphoria anyways. Did not one once respected unit trust purveyor invest in cold fusion ?

Its easy to analyse in hindsight but some of these firms made great returns on very few investments (100 baggers) and sometimes on small VCT capitalisations. Uncomfortably like luck I wonder. I feel that it underlines the skill of the Baronsmeads / Northerns / Mobeus and others to thump out solid dividends year in year out. Indeed simple businesses (and MBOs) help the predictability of the eventual outcome. As Buffet says invest in companies that can be run by idiots and they should not waste money on fancy company reports...

I find it ironic that I with my background in Physics prefers to hold shares in easier to understand businesses. It must be a lot easier to trawl the Chelsea Winebars talking of a fantastic wellness gym or premium knitwear selling Asia company rather than having to say you have just funded a novel trans-sonic intercooler. The words "Lush" does not come to mind.

sinterklaas
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Re: Elderstreet

#501179

Postby sinterklaas » May 18th, 2022, 9:52 am

Elderstreet / Draper / Molten Ventures VCT announced it has sold Lyalvale Express (shotgun cartridge maker) to Fiocchi Munizioni of Italy

Apparently this investment dates from 1998 - this has got to be a record surely?

IRR: 15.9% per annum and “a substantial proportion of the profits” goes into a special dividend of 1.6p.

Boots
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Re: Elderstreet

#501233

Postby Boots » May 18th, 2022, 11:49 am

Good news! (about time we had a bit of that, generally speaking)

UncleEbenezer
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Re: Elderstreet

#501261

Postby UncleEbenezer » May 18th, 2022, 1:11 pm

Damn, you've just prompted me to update its ticker on my RNS feed. One more evil of name-changing!

I note the share price is down since I last posted here. For what that's worth.

Karellan
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Re: Elderstreet

#501398

Postby Karellan » May 18th, 2022, 8:04 pm

It would be nice to have a bit more than 1.6p given the time since the last one.

Fewer special dividends than name changes - is that a record ?

scotia
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Re: Elderstreet

#534089

Postby scotia » October 1st, 2022, 11:15 pm

Elderstreet/Draper Esprit/Molten Venture.
Over the past 10 years I have held shares in this VCT. As part of my portfolio simplification, I am now slimming down my VCTs, and I sold the last of my Elderstreet/Draper Esprit/Molten Venture shares Yesterday. I have computed the XIRR of the three batches which I owned. These are:-
Purchased April 2012, Sold October 2017. Assuming the 30% tax return was received at the same time of the purchase, the XIRR was 20.2%. If no tax relief had been received, this drops to 9.7%
Purchased June 2015, Sold September 2022. Assuming the 30% tax return was received at the same time of the purchase, the XIRR was 9.3%. If no tax relief had been received, this drops to 2.8%
Purchased April 2017, Sold September 2022. Assuming the 30% tax return was received at the same time of the purchase, the XIRR was 6.6%. If no tax relief had been received, this drops to 1.8%
In common with a number of other VCTs its performance has been dropping, but at least in all of the above it has kept its return above the water line - even if the tax relief had not been received.

Karellan
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Re: Elderstreet

#611561

Postby Karellan » August 27th, 2023, 5:18 pm

I see in the annual report that the dividend is to be reduced for some technical reason. I do hope that the managers put more effort into rectifying that and less effort into telling us how well it is going. I do however note that some of the directors have upped their shareholdings.


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