Herald Investment Trust – Tech bids demonstrate value; Marten & Co published an update note on Herald Investment Trust.
Herald Investment Trust – Tech bids demonstrate value
Herald Investment Trust’s (HRI’s) manager believes recent portfolio activity (bids for Avesco and Mentor Graphics) shows that HRI’s NAV does not reflect the true valuations of the underlying companies, particularly when a trade buyer is looking to gain control. The UK is seeing considerable expansion from the major technology players (such as Amazon, Apple and Google). HRI’s manager thinks that this development is expanding the skillset of the sector and boosts the ecosystem that supports these tech giants. Small-cap technology, particularly in the UK, has been suffering from a marked lack of liquidity and HRI has seen an expansion in its already significant discount to NAV this year. However, HRI’s UK portfolio has a predominantly global customer base and its manager believes it will likely benefit from an improved competitive position following sterling’s depreciation.
Small-cap technology, communications and multi-media
Herald seeks to achieve capital appreciation through investments in smaller quoted companies, in the areas of technology, communications and multimedia. Investments will be made globally, although the portfolio has a strong weighting to the UK.
You can access the fund’s website here
HRI : Herald Investment Trust – Tech bids demonstrate value