RE: One to go for on the recovery path20 Apr 2020 15:03
Simon Thompson in Investors Chronicle on line had a mention, late last week.....
"Gresham House’s value proposition
Aim-traded investment company Gresham House Strategic (GHS:950p) has been a top performer in recent years, but the portfolio has not been immune to the market rout, shedding 22 per cent of its value during March.
This highlights the important point that in significant ‘risk-off’ periods the valuations of less liquid small quoted companies are impacted far more than large-caps. That said, a negative shareholder return of 5 per cent for the 12 months to 31 March 2020 still outperformed all bar one of the open-ended UK smaller companies’ funds covered by Trustnet, and was almost 13 percentage points higher than the IMA average return for this universe.
The pull-back in net asset value (NAV) per share from a high of 1,420p on 31 January 2020 to 1,112p now means that GHS’s shares, at 950p, are priced 15.5 per cent below NAV compared with a 3 per cent discount in December. Importantly, almost a fifth of the portfolio is in cash, so GHS has firepower to exploit any attractive buying opportunities.
Latest portfolio additions include ULS Technology(ULS), a digital conveyancing platform for housing transactions which has launched a new product, DigitalMove, to improve the efficiency and speed of the process for consumers and advisers. GHS has taken an initial position in Van Elle(VANL), a piling and ground engineering specialist for the construction industry and a market leader in the rail sector ahead of a likely “tsunami of infrastructure spending in the years ahead”.
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