There is no doubt the IT share prices in many cases have gone crazily out of kilt with the underlying assets.
Take Lindsell Train Investment Trust LTI - A £200M IT where it is a small concentrated equity holding in what one would call 'quality' Companies.
However, it has 35% of it's assets in the Fund management business Lindsell Train Limited. About 24% of the business based on a total share issue of 26660. The 65% of assets are readily realisable so you could get back to cash quickly. That makes about £136M. The FM business has a £100M of cash in it. So £24M ultimately belongs to LTI. £136M plus £24M equals the market cap of the trust, £160M. So the FM business is thrown in for free if you buy shares at the present price. To me it's nuts! The FM business is not having a great time of it however it still has circa £15/16 Billion of assets under management. It is a very profitable business! What price for the FM business? Well City of London Investment Group CLIG has a market cap of £150M on £7.5B of assets. Double your 150 and you have £300M for £15B under management. 24% of that I make £72M.....I have pencilled in a dividend of £8M from LTL this year so I think my valuation share of the FM business is not to far off the mark.
I paid today £792 per share and so I believe the declared NAV for the trust is correct at about £1030.
Buying ULVR, Diageo, LSE, Relx on a 23% discount along with a FM business similarly discounted seems a no brainer to me.....some people might say leave the er off the brain and i'd be correct
I'll predict that we will look back at this period as a time to have loaded up on many ITs particularly where there is visibility to the underlying assets and those assets are liquid.