hiriskpaul wrote:I have been doing some bottom fishing (sorting ITs by discount to NAV) and came across this one on a discount of 46%. It is also sitting on 28% cash which is interesting. Then I realised I know the chairman (Will Whitehorn) who used to live next door and who's son is a good friend of my daughter. Not that this makes the slightest difference to my thoughts about the investment case.
Anyway, why the massive discount? Is it that the valuations of the unlisted portfolio are out of alignment with reality, following the tech sell off, or is there something I have missed in the announcements, documents or in the portfolio itself?
I realise this is highly speculative stuff, but thought it might be worth having a small punt. It pays no dividends, which is handy and I can use 75% of the value as variation margin at IG, also useful.
The big discount IMHO is mostly due to doubts about the unquoted NAV. Given that some of the trust's unquoted holdings listed recently (I think that the big one is Arqit) and their share prices have been hammered, as has most of the technology sector, people are going to question the valuations put on the remaining private companies.
I sold most of my shares a few months ago, keeping a very small holding so that I pay a bit more attention to it that if it was just on my watchlist.