By Jean-Baptiste Andrieux, Reporter, Trustnet, 12 June 2024:
It may have flown under many investors’ radars, but the best-performing investment trust so far this year specialises in private space tech businesses.
Since the beginning of the year, Seraphim Space has surged by 94.8%, nearly 40 percentage points ahead of the runner-up, Foresight Sustainable Forestry Company.
While Seraphim Space’s performance in 2024 has been stellar, it follows two consecutive challenging years, with the investment trust’s share price falling 64% in 2022 and 23.9% in 2023..
Although space-related technology is an exciting area and represents a new frontier of growth potential, Morgan emphasised the high-risk profile of Seraphim Space.
Therefore, he recommended that investors adopt a very long-term horizon with Seraphim Space and size it appropriately in a portfolio..
James Carthew, head of investment companies at QuotedData, agreed and added that the trust is a unique proposition, even among space funds.
He said: “The few other space funds that investors can access tend to be more exposed to big aerospace and defence stocks that have a side-line in space, whereas Seraphim is more focused on unlisted companies that would be impossible for most investors to access any other way. It is a diversifier, therefore, but it has been volatile and that may continue.”
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