by Cherry Reynard from interactive investor, 23rd June 2025:
Market volatility can feel pretty grim while it is happening, but for those who keep their nerve, it can be a valuable moment to do a spot of bargain hunting.
However, as recent market moves have demonstrated, the bargain hunter has to be quick off the blocks..
We ask a range of professional investors where they are finding the most compelling value opportunities..
James Carthew, head of investment company research at QuotedData, suggests Artemis UK Future Leaders as an option for investors wanting to take advantage of a potential rally in UK assets..
Another notable spot for bargains is the renewable energy sector. Certainly, there are problems – the persistently high gilt yield, for example, has weighed on the sector – but yields of over 9% may tempt investors back to the sector..
It is also a favoured area for Carthew. He points to companies such as SDCL Efficiency Income Trust.. “Its main problem is that over half its assets are in the US, where the regime is hardly friendly towards renewables. Having said that, the discount looks way too wide. Efforts are under way to sell all or part of the trust’s stake in US solar developer Onyx and the EVN electric vehicle charging business in the UK. Realising assets at or close to NAV, reducing gearing, and funding share buybacks could help stem the discount widening.”
A slightly more straightforward option is Gresham House Energy Storage, currently on a -34% discount. Carthew says this looks bizarre given that a bidding war for a very similar trust, Harmony Energy Income Trust Ord (LSE:HEIT), has resulted in a bid at asset value.
The private equity sector also has lots of cheap trusts. The big picture has been clouded by the recent market volatility delaying IPOs and high borrowing costs making it harder to fund buyouts. Carthew adds: “It feels as if these concerns are overdone. HarbourVest Global Priv Equity and Pantheon International look particularly cheap on around -40% ish discounts.”..
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