NAS : North Atlantic Smaller Companies thinks markets fully valued
North Atlantic Smaller Companies interims for the six months ended 31 July 2014 have been released. These show the net asset value rising by 4.4% over the period (after adjusting for the dilutive effect of the convertible loan stock and valuing the holding in Oryx International Growth : OIG at its share price rather than consolidating it within North Atlantic’s accounts). The share price rose by 9.4% as the discount narrowed from 19.6% to 15.8%. By contrast the S&P500 Index rose by 5.4% and the FTSE All-Share Index rose by 2.5%.
The report says that high US dollar cash balances held back performance during the period.
Chris Mills of Harwood Capital, the manager, is hopeful that positive performance can be achieved in the second half driven by the unquoted portfolio but believes it is unlikely that equity markets will make significant progress in the second half.