The Lemon Fool

With higher interest rates and recession looming large, private equity is a probably quite high on the risk scale right now, but how much of the risk is already in the price? The 43% discount of this fund is the highest it's been since the worst of the COVID sell-off but the NAV has been steadily rising.
I bought some of these last year and unlike a lot of my portfolio they have held up well, so I've topped up with a few more.
Any insights into the fund's performance would be welcome.

Y

abrdn Private Equity Opportunities Trust, to save others looking the abbreviation up.

yieldhog wrote:With higher interest rates and recession looming large, private equity is a probably quite high on the risk scale right now, but how much of the risk is already in the price? The 43% discount of this fund is the highest it's been since the worst of the COVID sell-off but the NAV has been steadily rising.
I bought some of these last year and unlike a lot of my portfolio they have held up well, so I've topped up with a few more.
Any insights into the fund's performance would be welcome.

Y

No insights I'm afraid!

I have held this IT for over 5 years and am comfortably in the black - and topped up in May.

The discount is huge - on my short list to top up again - when I have sufficient accumulated dividends. A gamble of course.

The risk being that the growth assets within are revalued so that the NAV discount is somewhat overblown. Is that the case?

airbus330 wrote:The risk being that the growth assets within are revalued so that the NAV discount is somewhat overblown. Is that the case?

Seems plausible.

Intuitively the risk (of PE in general) would seem highest when listed assets have dropped for very good reasons and PE valuations haven't yet dropped - as might possibly be the case right now (though to say anything more definitive would smell of timing the market). At such times one has to suspect a lag. But it's still a risk, not a certainty.

Hargreaves Lansdown state the charges for APEO are a (very chunky) 6.14% The AIC website says 1.1%

https://www.hl.co.uk/shares/shares-search-results/a/abrdn-private-equity-opp-trust-plc-ord-0.2p
https://www.theaic.co.uk/companydata/0P00008ZPW/charges

I'm pretty sure they're both referring to the same fund. The former figure puts me off quite a bit. Which one is more accurate?

ignotus20 wrote:Hargreaves Lansdown state the charges for APEO are a (very chunky) 6.14% The AIC website says 1.1%

https://www.hl.co.uk/shares/shares-search-results/a/abrdn-private-equity-opp-trust-plc-ord-0.2p
https://www.theaic.co.uk/companydata/0P00008ZPW/charges

I'm pretty sure they're both referring to the same fund. The former figure puts me off quite a bit. Which one is more accurate?

Trust fact sheet states the annual management charge is 0.95% of net assets

Not at 43% discount any more - up about 10% today!

The past week has seen a good rally from most in the PE sector. Consider these discounts:

# APEO @ 470 - NAV disc. = 34.3%

# ICGT @ 1135 - NAV Disc. = 32.8%

# HVPE @ 2230 - NAV Disc. = 40.8%

# NBPE @ 1615 - NAV Disc. = 31.1%

# PIN @ 245 - NAV Disc. = 45.2%

PIN been left behind in the rally as a number of large trades pass through over the course of the past week.

Could well be an opportunity for a short-term recovery trade.

Well, PIN provided a great "anomaly" trade - a 16% rise to 285p, before settling back to 275p.

Loads of press tips for PIN came in to assist the sharp recovery from a stupidly oversold position.

.

SKYSHIP wrote:# PIN @ 245 - NAV Disc. = 45.2%

PIN been left behind in the rally as a number of large trades pass through over the course of the past week.

On the back of this thread I bought PIN at 246, so up about 10%, so many thanks to Skyship. Didn't notice the peak, but just looked at the portfolio in general and it has had another fairly stonking week - back to where I was in Jan now

ignotus20 wrote:Hargreaves Lansdown state the charges for APEO are a (very chunky) 6.14% The AIC website says 1.1%

https://www.hl.co.uk/shares/shares-search-results/a/abrdn-private-equity-opp-trust-plc-ord-0.2p
https://www.theaic.co.uk/companydata/0P00008ZPW/charges

I'm pretty sure they're both referring to the same fund. The former figure puts me off quite a bit. Which one is more accurate?

Just been on H-L and found their stated charges for some others in the PE sector look similarly steep: north of 6% for Oakley, for instance. Seems to be consistently at odds with the AIC site.

UncleEbenezer wrote:

ignotus20 wrote:Hargreaves Lansdown state the charges for APEO are a (very chunky) 6.14% The AIC website says 1.1%

https://www.hl.co.uk/shares/shares-search-results/a/abrdn-private-equity-opp-trust-plc-ord-0.2p
https://www.theaic.co.uk/companydata/0P00008ZPW/charges

I'm pretty sure they're both referring to the same fund. The former figure puts me off quite a bit. Which one is more accurate?

Just been on H-L and found their stated charges for some others in the PE sector look similarly steep: north of 6% for Oakley, for instance. Seems to be consistently at odds with the AIC site.

I posted about the discrepancies in reported charges vs actuals a couple of months ago following a check of my actual charges from HL.
Discussion was here -
viewtopic.php?t=34529

I have a holding in CMPI (Columbia Threadneedle Managed Portfolio Trust as is now) and note that a couple of their top ten holdings are from the PE space.
I have some spare ISA cash and I am toying with the idea of some APAX which has come down a bit from the rebound discussed previously in this thread.
APAX aim to pay a dividend of 5% OF NAV, so it is at an elevated level relative to share price currently.

Any comments.

W.

Just to Note

https://www.investegate.co.uk/announcem ... me/8162811

"Corporate Action : APEO has now become PATRIA private Equity

Important information about your stock 1 May 2024 A corporate action is taking place in relation to PATRIA PRIVATE EQY (stock code 3047468), which you currently hold in your portfolio (a/c 0995807). What is happening? Name Change Old name: abrdn Private Equity Opportunities Trust plc New name: Patria Private Equity Trust plc Effective date: 1st May 2024 Please be informed that abrdn Private Equity Opportunities Trust plc has changed its name to Patria Private Equity Trust plc, effective from 1st May 2024."