Investment trust insider on Global Opportunities Trust – James Carthew: Tap into Global Opportunities as ‘everything bubble’ bursts
Global Opportunities Trust typically flies under investors’ radars with a £90m market cap, but it is one to consider having delivered in both rising and falling markets.
A few weeks ago, I promised to return to delve a bit more into Global Opportunities Trust (GOT). First, I will reiterate that on an 18% discount, this trust’s shares are very obviously mispriced.
At the end of May, 35% of the multi-asset portfolio was in cash, just shy of 20% was in two funds, with the balance in listed equities.
I think the main issues are that it is not well-known or understood, and it is small with a £90m market cap. The size issue is a classic chicken and egg problem. The board and managers are keen to grow it but this cannot happen until the discount is eliminated.
The trust was listed in 2003 as EP Global Opportunities, and it has been managed since launch by Sandy Nairn, who is also a substantial shareholder.
Nairn has a long and distinguished career, latterly at Franklin Templeton and Edinburgh Partners. In 2022, he left Franklin Templeton to become GOT’s chief investment officer (the trust has been self-managed since 2021). Although it is worth noting that this is not a one-man-band operation. GOT has appointed Goodhart Partners as a sub-adviser.
Central to the trust’s investment ethos is a rejection of overt and covert index-tracking and any focus on short-term market movements. The investment team is adamant that if you are going to fixate on the trust’s short-term returns relative to an index, you are probably best investing elsewhere.
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