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Started: PJMaaa, 7 Jun 2024 12:58
Last post: Tattyhead61, 13 Jun 2024 09:03
Northvolt will probably be the first Ipo and that's been put back a little .
PJMaaa - there certainly does appear to be resistance around £9.
But it doesn't largely seem to be "thanks" to any widening NAV discount. Give or take 2-3%, that's remained fairly stable since April.
I guess what may be needed to move the sentiment dial is for one or more of SMT's private holdings to stage a successful IPO.
SpaceX? Well maybe not an IPO just yet. But in May 2024, Bloomberg reported SpaceX plans to sell shares at $108 to $110 apiece in a tender offer that could value the company at roughly $200 billion.
Still a pull back every time the fund hits 9..
Despite any encouraging news that comes along..
(Not complaining, just an observation, as I don't pretend to be particularly knowledgeable about the workings of the markets..)
Started: shano1, 25 May 2024 10:46
Last post: CaptLard, 27 May 2024 09:47
@Stocksr - Let's see what happens. My sense is SMT is getting a bit better at communicating with the outside world and this is helping with investment manager / market perception. Personally reduced holding a while back, now at 8% of portfolio with 11% profit. Happy to hold long term and push it up to 10% of portfolio if it dips again.
Pretty good 1 year chart, its a hold, buy in again at 800, remember high of 1400 a few years back, difficult call if you bought then or thereabouts, managers seem to be taking notice of investment climate at last, more confident about SMT than I was 2 yrs ago
Hi, i made the mistake of thinking SMT should take profits on Tesla about ten years ago but that share just kept rising for years although it has fallen back more recently. The management have more information than us and i am happy to let them get on with it. There is no point investing in a trust if you think you can do a better job. ( I've tried that)
Very true LLoL - this was a common mistake at one of the other Baillie Gifford investment trusts, EWI. I believe the management team were actually told to take profits at certain levels which makes perfect sense for the reasons you outlined.
Shano1 - that analyst may be right. Then again, they may not.
But when you’ve already made a 50 fold+ return on a holding, it’s only prudent to bank a few profits. Even after this, NVDA remains SMT’s biggest holding by value. And there may now be other opportunities for that cash which are more likely to go up 50 fold than Nvidia is to repeat its previous success.
Started: lordloadsoflolly, 24 May 2024 10:29
Last post: lordloadsoflolly, 25 May 2024 08:45
Sfh300 - IMHO the risk is extremely high with Nvidia at current levels. Everything is priced in for continued exponential growth and at some point, chances are there’ll be an earnings miss. Simply because, as SMT’s managers point out, nothing rises in a near-vertical line forever.
It may not be now, it may not be for several more years. But assuming it eventually happens, Nvidia holders won’t be looking quite so comfortable.
SMT first bought into NVDA around the $20 level. The current price is around $1060. And you’re wondering if they know what they’re doing by reducing slightly. I mean, really?
As long as AI takes off as some expect it to. Terry Smith at Fundsmith has a different opinion but let's hope SMT are correct.
Nearly a third of Scottish Mortgage (SMT) assets are invested in companies involved in AI, the Baillie Gifford flagship investment trust revealed today.
As its annual results showed the growth fund bouncing back from two years of losses with an 11.5% gain, taking its assets to £12.6bn in the year to 31 March, deputy manager Lawrence Burns said AI was turning out to be the most significant invention since the Gutenberg printing press in 1440.
Burns, who joined manager Tom Slater three years ago ahead of the retirement of former lead manager James Anderson, said they divided AI stocks between hardware, infrastructure and applications"
Brilliant to be so heavily into AI!
Of course, but where is the risk?
Risk management is important, not only chasing winners.
Started: PJMaaa, 24 May 2024 12:38
Last post: PJMaaa, 24 May 2024 12:38
Seems like a fair bit of profit taking going on, each time the fund slips above 9..?
Last post: arolivier, 20 May 2024 21:30
Moderna made a yearly high today, good for SMT
Started: lordloadsoflolly, 8 May 2024 15:48
Last post: thefrogster, 13 May 2024 18:12
Here is an article which says just that LLoL:
https://citywire.com/investment-trust-insider/news/elliott-could-have-doubled-its-money-in-scottish-mortgage/a2442236?re=120261&ea=1988161&utm_source=BulkEmail_Investment%20Trust%20Insider%20Daily&utm_medium=BulkEmail_Investment%20Trust%20Insider%20Daily&utm_campaign=BulkEmail_Investment%20Trust%20Insider%20Daily
More on that abnormally large 35,000,000 share buyback last week.
It transpires the transaction has Elliott's fingerprints all over it.
They've now moved "below 5%" again, with some commentators speculating all 35,000,000 shares repurchased by the fund were from Elliott's sale:
www.proactiveinvestors.co.uk/companies/news/1047440/scottish-mortgage-activist-laughing-all-the-way-to-the-bank-1047440.html
At best, we won't know exactly how much skin in the game Elliott still has until they NEXT sell (or - less likely - buy). And even then, we may never find out (see below!).
As I understand it, shareholders are obliged to notify when their holding "reaches, exceeds or falls below 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10% and each 1% threshold thereafter up to 100%".
The RNS after Friday's close relates to Elliott falling below 5%. But presumably that could mean they're already below 3%, as I believe they only have to notify once, when any threshold is triggered.
In which case, as they wouldn't have to notify again below 3%, we may never know!
Either way, I had hoped they'd be in it for longer at their full 5%+ level. Though they probably will still exert significant influence, even if they really have halved their holding as some commentators are speculating.......
I wouldn't worry too much about UK interest rates (encouraging though the latest mood music sounds).
Given its high US concentration, SMT is likely to be far more influenced by the Fed's moves IMHO.
Yes, agree. My message was pre-Dovish BOE statement yesterday and today's 'UK out of recession' news. Feeling fairly bullish.
Ubik_Fresh - I think we'll start seeing rate cuts before 2025 (even in the US).
Possibly not much before the Presidential election in America's case. No doubt Democratic pressure will be brought to bear there, however independent the FED is meant to be.
Started: CaptainPicard, 25 Apr 2023 14:39
Last post: lordloadsoflolly, 29 Apr 2024 08:27
DorsetLSE - I totally agree with you about chartists & so-called experts.
About a decade ago, I recall many experts saying the US markets were over-valued & due a major correction. At that time, I had a decent chunk of my pension pot in European equities, going nowhere fast. Despite the prevalent “expert” advice, I decided to move from a European to a US fund. And boy am I glad I did.
Many experts are again saying the US is over-valued today. And they could be right eventually. But in the long term, I fully expect them to be wrong again. Most non-US markets are heavily influenced by American sentiment anyway. So if the US falls, Europe & the UK are almost bound to follow suit.
Let’s hope if there is any US downturn, it’s fairly short-lived & shallow, as SMT has a heavy geographic concentration there. I suspect the Fed will still reduce interest rates later this year or early next, which should help.
As for SMT “going nowhere for too long”, I know what you mean as it has seemed rangebound for some time now. It almost feels like a case of one step forwards, two back. But if you look at the share chart, that’s not entirely fair. It has actually gone up 37% over the past 12 months, albeit from a low base.
In my 40+ years of investing I have learned to ignore so called "experts" and chartists (a bit like fortune tellers) who usually have an agenda to talk up or down the stock values. Remember when oil was forecast by experts to go above $200? Valuing SMT is very difficult as it involves so much unquoted companies as well as the general market movement in the public stuff so I don't really believe the valuations. As for me I still have £22k in SMT and it represents just over 2% of my portfolio so no big deal but its been going nowhere for too long and at age 75 my investment horizon is getting closer :)
CaptLard - I think you'll find the answer in my previous post.
Unless you reckon its summary of SMT's figures is accurate:
Annual Sales, $-2,913 M, Annual Income, $-2,922 M
Can an automated BOT charting thingy actually analyse an investment trust, which is a very different beast to analysing the financial fundamentals of a "normal" business, where you can compare one business to another, like bank to bank?
I am not sure it can. Thoughts?
Ripley94 - not sure how reliable some of that data is.
For example, it says:
Annual Sales, $-2,913 M
Annual Income, $-2,922 M
What's that about?!
Started: StrictlyZinc, 15 Apr 2024 09:37
Last post: Walp, 21 Apr 2024 19:01
I can understand why someone might buy/sell in short succession with the individual interests in a shares it package like SMT, but not SmT as a conglomerate.
Of course trading in individual investments will follow this pathway effecting the price of SMT ultimately, but SMT is always going to remain a buy in and stay in investment to get the best out of it.
We should see a rebound on Monday (he says cautiously) which I hope (he again says cautiously) underlines the temporary nature of many events creating negativity... Pessimism rules of course...
Notwithstanding any real/perceived S&P correlation, whether you buy, sell or hold is IMHO likely to be influenced by your timeframe more than anything.
Timing the markets consistently is notoriously hard.
I’d also question whether SMT has much correlation to any index, given its near 30% unlisted holdings. That’s kind of been its nemesis over the past 2-3 years!
As soon as the S&P started to roll over, I could not get out fast enough. Was happy with another small profit on the second time. I wouldn't expect sentiment to improve here until the S&P bounces / makes a base. 800 is tempting to buy back in, but I think its a falling knife now.
There is a huge gearing to the S&P in this list.
ASML Holding NV 8.20%
NVIDIA Corp 7.90%
Amazon.com Inc 5.27%
MercadoLibre Inc 5.00%
Moderna Inc 4.73%
PDD Holdings Inc ADR 3.80%
Tesla Inc 3.47%
Ferrari NV 3.16%
Wise PLC Class A 2.40%
Spotify Technology SA 2.36%
Looks likely continued low sentiment for SMT comparatively given the 4.23% loss following the US open. They appear to be particularly negative as concerns the IT although some of it might be due to the recent news of pairing of 10% staffing that suggests Tesla demand downturn?
Ostensibly generalistic stuff down to fears of an expanding middle East conflict... Perhaps the powers that be in Israel might now be threatened with withdrawal of weaponry if they respond against Iran and grow up a little given they struck recently first?
I'm not holding my breathe but am hanging in in there nonetheless....
Sure, but not worth reading too much into one morning's movement. If you look at performance over one month for example, SMT has outperformed PCT. Though this is equally irrelevant IMHO.
It's the long term trend that counts. For now, PCT has significantly outperformed over 5 & 10 years. So you either switch to PCT if you think this pattern will continue. Or you stick with SMT if you don't.
Started: lordloadsoflolly, 18 Apr 2024 14:58
Last post: lordloadsoflolly, 18 Apr 2024 14:58
Interesting - SMT has bought back into TSMC over the past few days, building a holding of approx 1% so far (£140m).
TSMC's Q1 profits exceeded expectations on "strong AI chip demand" & it expects Q2 sales to jump for the same reason:
www.reuters.com/technology/tsmc-set-report-5-rise-first-quarter-profit-strong-ai-chip-demand-2024-04-18/
Assuming Elliott's still in at 5%, I imagine we can expect further fireworks given the recent share price retracement.
Started: accipiter, 11 Apr 2024 16:13
Last post: Shakx7, 16 Apr 2024 14:59
I really rate Blue Whale and manager Stephen Yiu. However I see the strategies as very different and so SMT makes up ~15% of portfolio and Blue whale ~10%.
Blue whale is very much 'quality growth' vs SMT which is Concept growth. SMT seeks that 1 in 100 revolutionary idea to change the world. Blue Whale is fundamentals driven.
I think the best comparator to Blue Whale is Fundsmith and Stephen would probably agree. Stephen is a younger, hungrier and probably more motivated version of Terry Smith who is nearing the end of his career. Whilst the fund is slightly more volatile than Fundsmith I am encouraged by Blue Whale.
Very different animal to SMT however
Any investors in Blue Whale here? I'm thinking of swopping out of SMT into Blue Whale that seems to have a similar investment strategy. TIA
Last post: lordloadsoflolly, 11 Apr 2024 16:21
* the frogSter. Apologies!
Thefrogter - you're welcome!
Given their interventions elsewhere, I think it unlikely Elliott are in it purely for a short term flip. Quite apart from anything else, they'd have probably bailed already, when the share price nudged £8.94. But you never know.
Meanwhile SMT's buybacks continue apace and volumes will hopefully increase in line with any continuation of the share price drop.
Thanks LLoL - I imagine Elliots will be all over the valuations at the moment though. I just hope they're not looking to make a quick buck and flip their holding as this wouldn't be good for the SP short term.
Thefrogster - thanks for that. Though I can't vouch for its accuracy, I've since found the following article on re-valuation frequency, which states: "Valuations for Scottish Mortgage’s private holdings, and all of Baillie Gifford’s trusts with unquoted exposure, are carried out by internal committees with input from an independent third party, IHS Markit. The private holdings are re-valued on a rolling-three-month cycle, with a third of the unlisted holdings valued every 30 days. However, pricing is monitored daily by Baillie Gifford’s private valuations team."
The full article, dating back to June 22 can be found here:
portfolio-adviser.com/are-scottish-mortgages-unquoted-valuations-detached-from-reality/
I remember reading last year (sorry, can't find the article) that SMT revalue a third of the private holdings each month in addition to some adhoc valuations being carried out.
Started: CaptLard, 31 Mar 2024 16:55
Last post: Slownsteady, 1 Apr 2024 22:17
Https://www.thisismoney.co.uk/money/diyinvesting/article-13173427/We-Covid-vaccine-48-hours-cancer-Moderna-boss-talks-Scottish-Mortgages-Tom-Slater.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.97818200.673184734.1711872187-730764756.1710093333&_gl=1*6xvr2c*_ga*NzMwNzY0NzU2LjE3MTAwOTMzMzM.*_ga_XE0XLFFF16*MTcxMjAwNTY3Ni4yNS4xLjE3MTIwMDYxNzcuMC4wLjA.
Just read this. Thought it may be of interest.
https://www.cnbc.com/2024/03/27/moderna-moves-three-vaccines-into-final-stage-trials.html
Started: lordloadsoflolly, 30 Mar 2024 10:13
Last post: lordloadsoflolly, 1 Apr 2024 09:49
Meconopsis - thanks. As the ST article (which I’ve now read) points out though, there have been recent funding rounds with some of SMT’s unlisted holdings. So it doesn’t have to be SMT doing the selling for a value point to be established.
I’m still not convinced selling 1% of your holding in an unlisted share would give investors that accurate a clue as to what the remaining 99% is worth. There could be umpteen reasons for selling, including a firesale where you’re never likely to achieve anywhere near market worth.
Lordloadsoflolly - what Beachouse says!
Listed shares are priced every second the market is open and that trading information is public.
Unlisted shares might only change hands once every 6, 12 or 18 months - and prices often aren’t disclosed. If SMT were to sell 1% of their holding then they could choose to disclose the price obtained - more public ally valuing their remaining 99%.
The way I see it, with listed shares the share price is based on the last trade, private equity is not actively traded so they say it is difficult to value, but by selling some of the holding you get a price per share that you can use to value the rest of the holding.
Meconopsis - I haven’t seen the ST article. But it seems slightly counter-intuitive to me that selling part of a holding which has yet to list would help unleash its full value. To me, it would look like prematurely jumping ship because you’d lost faith in it.
Or am I missing something?
“The Sunday Times: Britain’s biggest investment trust has declared it will resist a push from the activist investor Elliott to sell its prized stakes in the privately owned SpaceX and ByteDance, the owner of TikTok.”
The article is very sloppy on how it presents Elliott as seeking SMT to divest itself completely of SpaceX, etc. my understanding from other articles is a desire to sell enough of a stake to be able to show the value of the holdings.
Started: yorkmeister, 29 Mar 2024 11:19
Last post: Slownsteady, 31 Mar 2024 21:13
Sorry, I meant 2.1 percent of its portfolio are in Brandtech. Series A (2 Investors sticking in $ 350mn), Series B (3 Investors sticking in $ 260mn). Assuming equal take ups, that gives us 350/2 + 260/3 = c. $ 250mn Investment (c £ 200mn). This when it was valued at $ 1.4bn.
Seriec C (SMT did not participate) raised $115mn which equates to c. 3% shareholding.
SMT holding is now valued in SMT Annual Report @ £ 300mn ($390 mn), which looks about right?
I hope I haven't messed it up.
SMT has a 2.1% share in Brandtech. ($ 800mn = c. £ 600mn)
This is exactly the point I made last week. The unlisted are most likely (in aggregate) a blessing not a curse to the overall portfolio.
Brandtech Group valued now at just under $4bn after private placing this week. Don't know how big SMT shareholding % is, can't find it on Pitchbook, but the SMT investment valuation of gbp300m in Jan24 may well need a significant upgrade, can't imagine they have less then 20% as one of 2 round 1 investors. Serious candidate for an IPO in the next 18months, amazing growth rate and now with more ammunition for deals. A few more of these in the portfolio, surely why Elliott thinks the private portfolio is on the cusp of a significant upwards rating.
Started: Ratboy1971, 30 Mar 2024 06:18
Last post: lordloadsoflolly, 30 Mar 2024 10:00
Ratboy1971 - Anne Ashworth (the answer’s in your link). Having looked her up, she’s a regular contributor to the Daily Mail for her sins.
Assuming you can forgive her for that, the article didn’t strike me as hugely controversial or inaccurate. Nor terribly informative though. Posters/readers here know it all already.
Started: lordloadsoflolly, 28 Mar 2024 10:32
Last post: undercarriage, 29 Mar 2024 12:18
Hi Lord Lolly, many thanks for the clarification - Yes the SpaceX IPO is one of the reasons I've invested (plus Nvidia as well), managed to get a good chunk mid 600's & topped up again when Elliot came onbaord.
Undercarriage - Tesla was certainly a factor in driving up (excuse the pun) SMT's share price .
However, SMT's previous highs weren't "MOSTLY due to Tesla's meteoric rise". Partly, yes. Mostly, no.
Whilst past success isn't necessarily a guide to the future, it does suggest a degree of stockpicking skill (along with some luck).
Nvidia is another more recent example, though I'm hoping they'll cash in some of their chips there before the AI bubble inevitably deflates somewhat.
Beyond these public holdings, you never know - one or more of their current unlisted investments could just become the next Tesla. SpaceX? Northvolt?
Weren't SMT's previous highs mostly due to Tesla's meteoric rise?
I agree with them, I bought these about 18 months ago for a bit below 8 quid, I was quite annoyed with myself for a while but recently I am feeling a bit better.
I like the SMT portfolio, allows me to get exposure to private equity investments in an easy low cost way.
Only a relatively small piece of my portfolio due to the risk level but that risk (and the corresponding return I am hoping for) is nice to have in a well balanced/diversified portfolio.
Now all they have to do is get back to their previous highs and I will be very impressed with SMT :)
As Questor itself points out in the article below, they've sometimes got it wrong on SMT in the past. But an interesting summary nonetheless and I pretty much go along with their summary - namely "Buy* this high-risk, high-return fund for the long term but take profits when they occur".
*(in my case hold)
www.telegraph.co.uk/money/investing/stocks-shares/questor-time-buy-scottish-mortgage-again/
Started: StrictlyZinc, 22 Mar 2024 10:33
Last post: Nick1234, 28 Mar 2024 20:47
Huge buyback today according to the RNS:
"On 28/03/2024, the Company announces the purchase of 5,059,772 Ordinary Shares at a price of 893.62p. The shares purchased will be held in Treasury."
£45m in one day.
As small shareholders there is not much we can do but stay onboard for the journey. Hope the price goes up in the meantime
StrictlyZinc - whatever attracted Elliott Associates to SMT, given their history they presumably view it as a fund whose recent underperformance they can help reverse. Otherwise, why increase their holding to 5%?
Doesn't necessarily mean they're right of course, but at least they've succeeded with others in the past.
So let’s assume that rather than being a millstone, the unquoteds include some real gems that are soaring in performance and value. How can Elliot’s get some of the action? They can’t without buying SMT.
The market always assumes the unquoteds are too risky and a drain on the share price. What is Elliot’s know better ??
Started: StrictlyZinc, 22 Mar 2024 09:54
Last post: lordloadsoflolly, 28 Mar 2024 09:50
Beachhouse - it's a tricky one with those unlisted holdings.
At presentations, the managers have gone to great lengths to highlight all the checks & balances they've built into their valuation process. They've stressed the arms length independence of their valuers (i.e. it's not the managers marking their own homework), as well as the relatively high valuation frequency.
So they can't really win either way - they'll always either be accused of over- or under-valuing these assets. Possibly even both simultaneously from different quarters!
When SMT was languishing in the 600-700p area, I think the main concern was with the PROPORTION of unlisted holdings, as they're inherently less transparent - so it's much harder to know their true value.
I doubt Elliott would (or could) persuade them to change their valuation methods, even if they feel they're being over-conservative. A policy u-turn of that sort would soon be spotted & could easily lead to accusations of the books being cooked to overstate NAV, causing significant reputational damage.
I guess they might try to pressurise managers into reducing the overall unlisted proportion through trade sales. But that might not please certain existing investors, who were attracted by the trust's relatively high unlisted content & saw this as the major long term growth driver. Alternatively, they might push for more lobbying of companies like SpaceX, urging them to IPO sooner rather than later. Whether this would fall on deaf ears though is anyone's guess.
IMHO, the enhanced buyback programme has Elliott's fingerprints all over it. And it was probably their trump card. But no doubt they've a few more tricks up their sleeve!
I've been reading many articles about Elliot, they seem to know what they are doing, they have bought over five percent of SMT the UK's largest investment trust, that's a significant investment and they will be expecting to make a good profit. One thing they mention is they think SMT have undervalued the private equity, that makes sense to me, over the past year the pundits have been negative about the private equity saying it is risky, hard to value and up to the thirty percent limit, it's possible SMT have undervalued it to keep below thirty percent, Elliot may have done their own valuations and think they should be higher. I'm happy how things are going, many investment trusts are trading at large discounts, but Elliot chose SMT, and they will have had good reason.
Oldnbald - on your final point, the proceeds from selling one or more listed holdings could immediately be reinvested into other listed holdings - thereby simply rebalancing.
It wouldn’t necessarily lead to an overall increase in the proportion of unlisteds.
Thank You.
I have mixed feeling re: Private equity holdings as these are the future cash cows but.... they have grown in proportion of overall holdings and this balance needs to be restored tbh. However - this can be done in one of two ways
1. - sell a private stake to another investor. In Space X this may be do-able but others are far less 'liquid' and could lead to a significant distressed sale price discount to perceived value - this in turn means that any remaining holding is downgraded and the value drops and so does the NAV. if you follow me.
2. Start being activist - and get IPO's scheduled. This is easier said than done but SMT cannot be the only shareholders on the register that want this outcome. Take a leaf from Elliots book, or even use Elliot themselves, to agitate for IPO.
My preference is for '2' for value reasons, even if it is slower. Some of the holdings however are, by their holdings structure, hard to 'force' to IPO. ByteDance is 20% owned by founders, 20% by employees and 60% by global investors - with 40% 'sewn up' (assuming employees do what they're told) it will be hard to get any kind of outcome for IPO. These shares.... the one with restrictive covenants or large founds share holdings are the ones that should be disposed of fast IMHO .
I do not really think selling existing listed holdings like NVidia is an option, as tempting as it is, as this will make the Private:Public ratios even worse.
I note there was a webinar today, just finished in fact. I for one shall watch with interest when it's available to stream.
Beachhouse - not sure how tradeable unlisteds like SpaceX would be right now?
Best time to find their true value might be when they IPO.
It'll be interesting to see how much influence Elliott can (& wants to) wield. I suspect the managers will hold firm on their existing unlisted investments. I also suspect the new buyback scheme was a direct result of Elliott's intervention.
Last post: lordloadsoflolly, 25 Mar 2024 23:24
290754 - playing devil’s advocate, I suppose you could argue SMT’s managers might be persuaded to play things more cautiously with unlisteds in future, as these have been a drag on recent performance.
And that could lead to lost opportunities.
Or that they might be talked into part-selling some of their holdings with more racy current valuations (Nvidia springs to mind). Personally, I’d be quite happy with that anyway, but I guess it might mean missing out on the final? leg of their bull run.
I don’t really see much downside with Elliott myself, but am just trying to surmise the type of concerns others might have.
Sounds like good news for all shareholders to me - what is the downside?
Last post: lordloadsoflolly, 22 Mar 2024 14:03
Thrfrogster - I guess we'll never know their precise motivation. But whatever - from where I'm standing, it's hard to read any negatives into it.
Elliot's may have the same motives as previously with ATST or they may just see it as an opportunity for the hedge fund to make a quick buck. After all, it doesn't take a massive price increase to make a significant return when your stake is 5% of the fund.
Timing is interesting on this Elliot stake..
I wonder what their motivation is....they are activists after all.
I now wonder if the buyback decision was at Elliotts' "instigation"? The timing was very aligned...
Laallee - thanks for this - an interesting development!
I see it as quite positive & it'll certainly keep SMT's managers on their toes.
Alliance Trust's SP has gone up from around 500p in 2015 to 1225p today. And it has way outperformed its benchmark over the last 5 years:
www.trustnet.com/factsheets/T/id56/alliance-trust-plc/
Contrast that with the 10 years prior to Elliott's 2015 intervention, when Alliance Trust rose less than 70%. Admittedly this earlier period includes the 2007/8 financial crisis, but even so.
Last post: nimrod22, 21 Mar 2024 21:42
As if SMT might be getting out of the complacency hole it dug itself a couple of years back.
Started: shano1, 20 Mar 2024 18:13
Last post: CaptLard, 21 Mar 2024 20:17
Kind of similar CaptainPicard, sold 65% off and put into boring stuff as we are getting closer to early retirement. Just left with 5% of total portfolio in SMT (38k)
Thanks LLoL, weirdly rather than feeling too hurt about losing out on some of todays gain I feel a little relieved to have turned those shares into Premium Bonds. Boring and likely to erode a little due to inflation there but it is safe and locked away. I still have a lot of SMT shares and I back the investment portfolio but as you say, if you are checkkng the share price on a sometimes hourly basis you are in too deep. I feel confident SMT will keep going strong. I really hope it does. I have learned to make sure your investment portfolio has diversification. I plan to use the money for private education for my son. I will need the money very regularly to hand in 5 years time. Hard to say where the SMT sp will be then. Best to bet on more than one horse and maybe have some locked away in cash too!
CaptainPicard - I think your actions perfectly illustrate risk management.
Every investor's circumstances are different. And to some extent - along with your personality - they're likely to determine attitude to risk.
Life's too short to have sleepless nights worrying about the investments you manage. So by taking action to address this, you've done exactly the right thing. So what if you could have got a bit more? You'd have still had that worry in the meantime. And you broke even at the end of the day (probably better, once dividends are factored in).
Plus, valuable lesson learnt. Always ask yourself BEFORE investing how comfortable you'd be if you lost some/all of the money. If the answer's "not very", invest less. Or choose something altogether safer.
I feel your pain. For once I am truly grateful I stuck with my plan and didnt sell
All this share needed was for me to sell some! Always the way! I sold half when I was just over break even. Feeling positive and comfortable now. I think I was over-invested before.
Started: PJMaaa, 21 Mar 2024 18:37
Last post: PJMaaa, 21 Mar 2024 18:37
Before we, Inc me, get ahead of ourselves.. There could be a load of short investors readying themselves to take some nice profits..
One bit of less than positive news....?
Hopefully not.. 🤞🤞😆
Started: lordloadsoflolly, 15 Mar 2024 15:45
Last post: thefrogster, 20 Mar 2024 20:25
Interesting article LLoL - I also saw this positive take on SMT in CityWire today:
https://citywire.com/investment-trust-insider/news/hewitt-scottish-mortgage-on-the-front-foot-as-top-growth-trusts-recover/a2438689?re=118494&ea=1988161&utm_source=BulkEmail_Investment+Trust+Insider+Daily&utm_medium=BulkEmail_Investment+Trust+Insider+Daily&utm_campaign=BulkEmail_Investment+Trust+Insider+Daily
Personally I hope the comment referenced in my previous link about funding buybacks by "trimming positions based on their size" applies to Nvidia. No harm in top slicing, particulary when a holding has experienced a meteoric rise and is looking like it may now pause for breath:
www.hl.co.uk/shares/shares-search-results/n/nvidia-corp-usd0.001
Absolutely no need for anyone to apologise!
After all, there are no hard & fast rules on any BB - and I'm certainly not some kind of self-appointed moderator here.
Just better IMHO if we generally keep comments relevant to SMT. On which note, I found the following article on the recent buyback announcement interesting:
www.trustnet.com/news/13408629/how-scottish-mortgage-will-pay-for-its-1bn-buyback-scheme
"Thefrogster : let's find a meeting room to have a breakout session."
I'll bring the flip charts...
Yes, apologies - should be about SMT :)
Started: garageman49, 20 Mar 2024 16:46
Last post: garageman49, 20 Mar 2024 16:46
so... i bought this 2 years ago at about 11......despite having top performing investments like nividea etc it halved in value and pays **** all dividend.....then suddenly it seems they have 2 billion available for share buybacks.....could this be because the directors boots can no longer fit any more cheap shares in and a comfortable retirement looms ?????