British & American Investment Trust (BAF) has reported a total return of £2.0m for the year ended 31 December 2024, reversing a loss of £2.0m in 2023. Net assets increased by 31.9% to £6.0m, driven almost entirely by a strong recovery in the trust’s largest holding, US biotech company Geron Corporation.
The trust’s net asset value per share rose from 13p to 17p over the year, delivering a 45.5% total return (including dividends), outperforming the FTSE 100 and All-Share indices, which BAF says returned 9.7% and 9.5% respectively. However, the trust’s share price remains modest in absolute terms, and no final dividend was proposed beyond the 1.75p interim paid during the year.
Chairman David Seligman noted that Geron’s share price rose 70% in 2024 following FDA approval and market launch of its oncology drug, Rytelo. The company transitioned from a development-stage biotech to a revenue-generating enterprise during the year. However, performance in 2025 has since deteriorated sharply, with NAV falling to just £1.0m (3.0p per share) as of 25 April 2025 – a drop of over 80% since year-end.
The sharp reversal was blamed on a surprise decline in Geron’s share price, triggered by a poorly received earnings presentation in February and compounded by market volatility following new US trade tariffs introduced by President Trump. The board believes Geron remains fundamentally undervalued and expects recovery, noting that the company holds cash reserves of $500m and trades at just 1–1.5x projected first-year sales.
BAF’s board was highly critical of Geron’s previous management and the broader forces impacting its valuation, suggesting the stock may be “the plaything” of powerful short sellers, stock lenders, and acquirers. The trust argues that Geron is now an acquisition candidate and has urged its interim management to pursue strategic options.
Looking ahead, the trust’s outlook remains highly dependent on Geron’s recovery and any strategic developments around the company. The board also warned of wider macroeconomic headwinds driven by the shift in US policy under the Trump administration, which has disrupted global markets and dampened investor confidence.
The trust is also considering a rotation into new asset classes as its biotech holdings mature, though this is contingent on achieving further realisations.
[QD comment MR: British & American’s 2024 rebound – driven almost entirely by its long-standing position in Geron – was impressive on paper, but the reversal in early 2025 is a stark reminder of the risks in highly concentrated and speculative portfolios.
While the board makes a passionate case for Geron’s undervaluation, much of the narrative hinges on events outside its control – management changes at Geron, opaque market dynamics, and now geopolitical disruption. Investors may share the trust’s frustration, but with NAV down over 80% since January, it’s clear that belief alone doesn’t insulate against volatility. BAF has long been something of a binary bet, and that has both helped and hurt it in recent years. Calls for a strategic outcome at Geron may hold merit, but until those ambitions materialise, volatility is likely to remain the defining feature.]
