Activist hedge fund Saba Capital lifted its stake in Syncona (SYNC) from 10% to 11.3% last Wednesday, according to a filing on Friday. Shares in the £659m Guernsey-based life sciences fund stand on a 26% discount below net asset value (NAV) having fallen 43% over five years, although they have gained 15% in the past year.
Jupiter Fund Management on Friday trimmed its position in HgCapital Trust (HGT) to 4.9% from the 5.5% it disclosed in early February after shares in the software-focused private equity fund fell 25% in the “Saaspocalypse” scare over possible artificial intelligence disruption for software-as-a-service companies. At the time the £1.9bn investor in Hg managed funds had tumbled to 28% below net asset value (NAV) at 405p. The discount has narrowed slightly to 21% since then but the shares stood just 14p higher at 419p on Friday having recovered from a low of 323p in late May.
Literacy Capital (BOOK), the £179m UK-focused private equity fund, saw a “material widening” in its share price discount in the first half of the year, leading to a 20.6% shareholder loss despite the portfolio slipping only 2.4% in the six-month period with net asset value per share standing at a previously disclosed 472.6p at 30 June. “Despite UK macro conditions remaining generally sluggish, encouragingly, several portfolio companies are gaining momentum and showing promise. These improving trends and stronger sales pipelines are expected to translate into higher earnings for the businesses, ultimately increasing their carrying values in future reporting periods,” said fund manager Richard Pindar in the half-year results. BOOK shares rose 1.5% to 303.6p in early trading have ended last week on a 37% discount to NAV,
I hold Syncona in my portfolio, I have held the position for years hoping for a recovery, still waiting. Maybe Saba can inject some life into the board, Give them indigestion at their tea and biscuit board meetings.