by Jennifer Hill, from interactive investor, 30th December 2024:
They say beauty is in the eye of the beholder and when it comes to investing it often pays to love the unloved. All investment strategies move out of favour or suffer setbacks from time to time – and holding your nerve means catching the rebound.
We asked a range of fund analysts and wealth managers to name funds they hold or recommend despite them underperforming in recent years. Why are they confident this beleaguered bunch will return to their former glories?..
One trust whose share price has been recovering but still has some way to go is Chrysalis Investments “From its launch in April 2018, the growth capital trust had a spectacular start, but a wide discount emerged as interest rates rose and investors turned against unprofitable and cash-consumptive companies,” says James Carthew, head of investment companies at QuotedData.
With the portfolio increasingly mature, realisations are happening. Carthew points to “impressive gains” on Graphcore and Featurespace.
One of its largest holdings, Klarna, recently filed for an IPO in the US. Carthew notes: “The proceeds from this should allow Chrysalis to meet its goal of returning £100 million to shareholders and free up sufficient capital to fund new investments.”
Read more here