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Investment trust insider on running last year’s winners

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James Carthew: Some 2022 winners are worth holding onto this year
I’m uneasy about the resilience of the recent stock market rally. Despite this, I think a few of last year’s big gainers could do well again in 2023.

Against a difficult backdrop, only about a third of investment companies generated a positive share price return in 2022. However, masked by those numbers, was a sizeable rally over the last three months. The good news on US inflation, which has now fallen month-on-month for six months, is encouraging a recovery in the share prices of a range of growth-focused funds, presumably on hopes that interest rates will soon start to fall.

I cannot help feeling uneasy about this rally and even more so about the rally in Chinese equities which has accompanied the loosening of Covid restrictions. With 2023 looking hard to call, is it a good idea to run last year’s winners?

Among the big winners of 2022, were the aircraft-leasing funds, most of which lease A380s to Emirates. One trigger for a re-rating was Doric Nimrod Air One’s (DNA) sale of its A380 aircraft to Emirates. The investment company plans to de-list shortly having returned the proceeds to shareholders.

The secondary market for these planes was…    read more here