I initiated a new position in BlackRock New Energy Investment Trust (ticker: BRNE) on 26 March at 38.4p per share. The shares are currently trading at a relatively modest 10% discount to NAV. However, the trust is committed to putting forward proposals at next February’s AGM, which will give shareholders the option of a cash exit at NAV (less costs). The holding represents just over 3% of the portfolio. I will post detailed research in the near future.
I sold the remainder of my shareholding in Aberforth Smaller Companies Trust (ticker: ASL) on 25 March at a price of 823p per share, as the discount had narrowed to around 10%. I had sold part of my shareholding at the end of February, after initiating a position in Aberforth Geared Income Trust (ticker: AGIT). I have kept my shareholding in AGIT, which accounts for 4.4% of the portfolio.
RENN Universal Growth Investment Trust (ticker: RUG) is a UK-listed fund, which invests in small-cap US companies (including non-US companies listed in the US). The trust recently announced plans to wind-up the fund. Whilst it is a high risk investment, I think there is sufficient potential upside and margin of safety to merit investing. I have just bought a small position in RUG at 238p.
I initiated a new position in Henderson Land (ticker: 12 HK), the Hong Kong listed property and holding company, on 14 March at a price of HK$49.45. The shareholding represents around 3.5% of my portfolio. At the current price, the shares are trading at very attractive valuation, which represents a substantial discount to their NAV. I plan to write a detailed research post on the company in the near future.
I have initiated a new position in RENN Universal Growth Investment Trust (ticker: RUG) on 12 March at a share price of 238p. At the beginning of February, the board announced the planned winding-up of the trust. Despite this, the trust is trading at a large discount to its NAV of around 27%, although the high degree of uncertainty means that initially at least I have bought a relatively small shareholding. A detailed research post can be found here.
I have reduced my position in Caledonia Investments (ticker: CLDN), selling part of my shareholding on 12 March at a price of 1831p. The discount has decreased substantially over the last few months from over 30% at one point in the middle of last year to around 20% now.
I sold part of my shareholding in the subscription shares of Impax Asian Environmental Markets (ticker: IAES) on 12 March at a price of 6.2p. This was an opportunistic move: the share price had increased significantly on the day and at that level was close to my current valuation. I thought it would be a good time to reduce my exposure. My average purchase price had been 2.3p and, prior to the sale, the shareholding increased to over 2% of my portfolio, quite a large position given the inherent leverage in the shares.
I have been successfully following the Discount Investing strategy for over a decade now. However, it is only since 31 August last year that I have been systematically recording the performance of the portfolio. Since six months have now elapsed, I thought it would be a good time to give a brief update on the strategy’s recent performance. It has been a good few months for stockmarkets globally. The strategy has also performed very well, returning 23% in total over this period, compared with 17% for the FTSE All-World Total Return Index (in pounds sterling).