Polar Capital Technology Trust PCT start buying back shares

[TheMotorcycleBoy]

I've just seen that in PCT's most recent RNSs they have been buying back shares. Sure, many ppl advocate that firms do this when they believe their shares are currently undervalued.

However this is an IT not a regular firm. Additionally they don't seem to have ever done this before.


https://www.investegate.co.uk/Index.asp ... &words=pct

My opinion? They have surplus cash to invest but believe their favoured stock purchases are all currently overpriced....who agrees?

Matt

[dealtn]

My opinion? They have surplus cash to invest but believe their favoured stock purchases are all currently overpriced....who agrees?

Matt

Relatively overpriced maybe.

Assuming they like their current portfolio choices (else why are they holding them), and nothing new is better (else why not already be in the portfolio), why utilise that cash buying more stock in the market, when they can effectively buy the same portfolio by buying (back) PCT shares at, presumably, a discount.

[Alaric]

My opinion? They have surplus cash to invest but believe their favoured stock purchases are all currently overpriced....who agrees?

Investment Trusts have a feature that the share price can stand at a discount or premium to the market values of the assets (NAV) owned by the IT. Some IT managers attempt to keep the share price close to that implied by the NAV using mechanisms of buying back shares when there's a discount and issuing new ones when there's a premium.

if they are or have been doing this, there is likely to be a disclosure somewhere in the Report & Accounts.