The Lemon Fool

RCP has long term been a very good performer but recently has been in the doldrums and gone to an unaccustomed discount to NAV.

I noted that the other day they suddenly perked up. Here is the reason:

https://citywire.co.uk/investment-trust ... s/a1480129

They are still at a discount but long term they still seem a good investment to me. Purely fortuitously I increased my holding substantially a couple of weeks ago

Interesting.
I was about to move some money into defensive trusts. I was going to prioritise Personal Assets and Capital Gearing on the basis that they had not moved up significantly recently, whereas RIT and Ruffer had.
My (very basic) thinking was that there would be no really obvious reasons for them to keep moving up significantly vs their benchmarks so just felt like I would buying them at a 'high', which never feel nice and would add to them later.
However, does this mean that they just got lucky with a 'win' and the fund has enjoyed a small re rating and so will plod on as normal. No one knows but it still feels funny buying into a defensive fund after a jump in price..???

They have done well for me over a long period (maybe 15 years or so). Now looks like a good time to buy when they are at an unaccustomed discount. Quite apart from the Korean investment, they hold a lot of stuff that I would never be able to access on my own and it is good to have something a bit different.

Dod

This thread caught my interest so I looked on the AIC website for more info. Under charges, it has:

"Fee structures within the long-only equity funds, whether structured as segregated accounts or otherwise typically involve a 1% p.a. management fee with a relative performance fee. The hedged equity funds are slightly higher .- typically a 1% to 2% management fee and a 20% performance fee. Private equity fees are structured differently and will usually have a 1% to 2% annual charge as well as a 20% carried interest above an 8% hurdle."

82% of the portfolio is under the "Other" category, 13% Cash.

Showing 0% premium/discount currently. Was generally at a premium pre-Covid, then at a discount after March 2020 until recently.

To me, it doesn't seem like a core holding.

bluedonkey wrote:This thread caught my interest so I looked on the AIC website for more info. Under charges, it has:

"Fee structures within the long-only equity funds, whether structured as segregated accounts or otherwise typically involve a 1% p.a. management fee with a relative performance fee. The hedged equity funds are slightly higher .- typically a 1% to 2% management fee and a 20% performance fee. Private equity fees are structured differently and will usually have a 1% to 2% annual charge as well as a 20% carried interest above an 8% hurdle."

82% of the portfolio is under the "Other" category, 13% Cash.

Showing 0% premium/discount currently. Was generally at a premium pre-Covid, then at a discount after March 2020 until recently.

To me, it doesn't seem like a core holding.

I look upon it as a wealth preserver with modest but steady growth. You quote charges which are of course high, but typical of the classes of investment. In one sense it is a global generalist and as such it would be a core holding to me, but I see it as a global specialist in that as I said earlier, it holds a lot of stuff that I could not access myself or at least not easily anyway. I therefore am very happy to hold it. Since this thread is on Company Analysis, I also hold for instance GSK and I would not regard that as a core holding and would rather hold RIT than GSK if it came to a choice.

Dod

Article on RIP Capital Partners in todays Telegraph
https://www.telegraph.co.uk/investing/f ... ss-spills/

"The merits of the trust’s multi-pronged investment approach were highlighted last week by the blockbuster flotation of Coupang, the South Korean ecommerce business.

RIT invested in the firm three years ago and its £38.5m stake then is now worth £440m, according to estimates from Numis, the stockbroker, as the shares surged on their debut on the New York Stock Exchange last Thursday."

scrumpyjack wrote:Article on RIP Capital Partners in todays Telegraph
https://www.telegraph.co.uk/investing/f ... ss-spills/

"The merits of the trust’s multi-pronged investment approach were highlighted last week by the blockbuster flotation of Coupang, the South Korean ecommerce business.

RIT invested in the firm three years ago and its £38.5m stake then is now worth £440m, according to estimates from Numis, the stockbroker, as the shares surged on their debut on the New York Stock Exchange last Thursday."

That's the way I like it! That is more than 11 times in 3 years. Good going by any standards, well up with Scottish Mortgage except that RIT is very much more conservative. I am very pleased to hold both. The one tends to complement the other.

Dod