March was a tough month for investors as the UK stock market dropped 7% and globally share prices retreated 5% with equities in Japan, Asia and emerging markets sliding 10-12% at the shock of oil prices soaring 63% to more than $118 a barrel in response to the US and Israel’s war on Iran. 

A range of London-listed investment companies exposed to the energy markets, private equity, gold, real estate, smaller companies and Japan were hit hardest as expectations for higher inflation and interest rates rattled asset classes across the board (see first table). 

Investors are waiting to see if US president Donald Trump will keep to his promise of an early end to the conflict. That might restore some calm to markets, although until the key Strait of Hormuz reopens crude prices are set to remain high.

Worst performers in March

Source: QuotedData as at 31/3/26

There were company specific factors at play with some of last month’s biggest fallers. Hydrogen Capital Growth (HGEN) sank over 54% as the struggling green energy fund, reduced to a market value of just £8m, prepared to go private and complete its wind-down out of the stock market’s view.

At the other end of the scale, 3i Group (III), the £26bn FTSE 100 private equity giant plunged nearly 27%, a sell-off accelerating after Action, the discount retailer accounting for over two thirds of its assets, worried investors last week with plans for a US launch next year. Shares in the company stood at a near 20% discount to net asset value on 31 March, in stark contrast to the 37% average premium to NAV they have traded at in the past year.

Golden Prospect Precious Metals (GPM) tumbled 19% as gold gave up its status as a safe haven, sliding 14% as investors took profits after a record run and a strengthening dollar and the prospect of higher interest rates weighed on the price. That knocked the shares in the miners held by GPM, which was last year’s best performing UK investment company with a 165% return. The resignation of fund managers Keith Watson and Robert Crayfourd who are leaving CQS Manulife to join Tufton also contributed to the share price fall. Shareholders are waiting to see if the board decides to follow the managers to their new employer.

BlackRock Frontiers (BRFI) exemplified the pressure on emerging markets funds with its shares falling nearly 18%. Stablemate BlackRock Throgmorton (THRG), which is merging with BlackRock Smaller Companies (BRSC), fell 17%, as did JPMorgan UK Small Cap Growth & Income (JUGI). 

Tritax Big Box (BBOX), the £3.9bn investor in high-tech  warehouses and distribution centres, racked up a similar decline that says more about higher government bond yields and cost of borrowing than about the state of its assets. 

Schroder Japan (SJG) slid 16%, temporarily underperforming the 10% correction in the country’s stock market.

Best performers in March

Source: QuotedData as at 31/3/26

Macau Property Opportunities (MPO) was a surprise leader of the small band of investment company share price risers last month. Its shares rebounded 24% despite warnings from the board of shareholder losses as the £4m company sells assets to repay debts. It’s more of a dead cat bounce after a 65% slump in the past six months.

Amedeo Air Four Plus (AA4) flew nearly 21% higher on a £143m cash bid from Lesha Bank of Qatar, that pulled DP Aircraft almost 9% higher in its wake. 

Three funds in wind-down found the market mayhem conducive with Riverstone Credit Opportunities (RCOI), Abrdn Property Income (API) and Aquila European Renewables (AERI) rising between 7% and 18%, though their shares remained on wide discounts to net asset value.

Rising energy prices boosted some renewables funds. For battery specialist Gore Street Energy Storage (GSF), however, a 7% jump came after it hiked dividends last month to return more capital to shareholders who have endured three years of poor share price performance. 

First quarter risers

Source: QuotedData as at 31/3/26

Turning to the first quarter, Baker Steel Resources (BSRT) streaked ahead with a 53% return that last month’s turmoil did not diminish. Shareholders in the £128m mining fund run by Trevor Steel have enjoyed a double whammy as the company launched share buybacks to address the yawning share price discount while its investments surged on the back of the commodity boom and Devon miner Tungsten West soared on the reopening of its Hemerdon mine. 

Growth capital funds Schiehallion (MNTN) and Seraphim Space (SSIT) maintained their momentum from last year, rallying nearly 30% and 25% respectively. Bluefield Solar Income (BSIF) advanced 23% from lows after putting itself up for sale at the end of 2025 and BlackRock Energy and Resources Income (BERI), which invests in both clean and traditional energy companies, narrowed its discount with an impressive gain of more than 21%.

Augmentum Fintech (AUGM) added nearly 19% to its lowly share price in response to a highly discounted £186m cash bid from Norwegian buyout group Verdane.

First quarter fallers

Source: QuotedData as at 31/3/26

India funds are prominent towards the bottom of our list of first quarter fallers. Shares in India Capital Growth (IGC), JPMorgan India Growth & Income (JIGI) and Ashoka India Equity (AIE) gave up 19%-21% in the first three months of the year as a weak rupee, tariff fears and high equity valuations discouraged investors. Shareholders might be encouraged by comments this week from Asia fund managers at Aberdeen and Fidelity that they had started to see “pockets of opportunity”.

Other notable fallers were HgCapital Trust (HGT), which ended the quarter on an unaccustomed 30.7% discount after the software-focused private equity fund was dogged by fears that artificial intelligence (AI) powered tools would decimate profits at its portfolio companies. Valhalla, the investment vehicle of Mark O’Hare, the founder of alternative investment data provider Preqin, took advantage of the sell-off to build up an 8% stake.

Bill Ackman’s US hedge fund Pershing Square Holdings (PSH) endured a 19% retrenchment on similar concerns about the AI threat to its investment in Universal Music Group and massive expenditure on AI infrastructure by Amazon and Alphabet. 

The decision of Chrysalis (CHRY) to enter a three-year managed wind-down might have been expected to stall its share price slide. However, the 31.6% decline partly reflects concern over the board’s decision to dismiss fund managers Richard Watts and Nick Williamson and appoint consultant Sam Dobbyn to oversee the sale of its assets. The halving of the share price of credit provider Klarna, an 11% holding at 31 December, has also weighed.

Stay a step ahead. Our daily newsletter brings you the latest on investment trusts and active ETFs. Subscribe here.