Scottish Mortgage Invest... Share Discussion Threads

[hazl] 09/1/2025 15:07

Still below asset value I see.


Separately.

[18bt] 06/1/2025 07:17

Hopefully Elon will stop his uninformed commentary on UK politics and concentrate on IPOing SpaceX. SpaceX could be one trigger for narrowing the SMT discount further.

[quepassa] 03/1/2025 07:16

Moving up from second in November, ScoMo scoops top position in ii's monthly rankings for most popular Investment Trust for December.

[quepassa] 30/12/2024 20:16

Edinburgh Worldwide owns a 5.6% portfolio holding in unlisted Psi Quantum as at 30/11/24 (valued at £44.2m)

Seven months prior as at 30/4/24 , the holding in Psi Quantum was valued at £36.1m.

However, in view of the recent meteoric rise in value of other listed/quoted comparator Pure-Play quantum computing stocks, one can but wonder to oneself whether the value of Psi Quantum is up with events when other quoted quantum computing stocks have skyrocketed.

For example:-

D-Wave Quantum Inc is UP 923% over one year and UP 267% over one month

Rigetti Computing Inc is UP 1,525% over one year and UP 675% over one month

IONQ is UP 575% over six months and UP 48.5% over one month


ALL IMO. DYOR.
QP

[quepassa] 30/12/2024 12:20

Another so-called expert commentator which totally fails to understand the unlisted portfolio.

When will investors and commentators come to their senses and realise that the unlisted portfolio is the real gem. The unlisted assets are the cherry on top of the sundae.

And Baillie Gifford - through its superlative reputation- is one of the very few retail fund managers which has top-table access to US and other private-equity and pre-IPO opportunities. An area which is otherwise largely dominated by Private Equity sources of capital - and off-limits to retail investors. For UK retail investors to be able to gain access via Baillie Gifford to this private and exclusive market is totally undervalued by the UK market place.

Just look at the rise and rise of SpaceX in the unlisted portfolio which Baillie Gifford initially bought into as a fledgling early-stage enterprise which most commentators mocked for many years. SpaceX has grown to become the third largest holding in the ScoMo portfolio and may well become its top holding by value in due course.

People forget that Microsoft was once a private unlisted company. And Apple. And Amazon.

And that's exactly what Saba Capital have spotted and want to exploit with their current attack on sister-funds BGUSA and EWI as well as their attack on other funds with big unlisted investments such as Herald Investment Trust. - The UK market undervalues unlisted investments and is mired in old-school ways of thinking that unlisted means illiquid and therefore automatically means a Discount-to-NAV. That's nonsense in the days of growing de-equitisation and the meteoric rise of vast new capital-raising possibilities from Private Equity.

In my opinion, Baillie Gifford and other houses could do a better job in market education and investor education in the UK on the attractions and importance of unlisted investments.

These golden investments are mis-understood as being a detractor and drag on the portfolios rather than the pot of gold which they truly are.

ALL IMO. DYOR.
QP

[quepassa] 19/12/2024 13:57

Archer Aviation

" Completes Construction of High-Volume Manufacturing Facility"

NYSE: ACHR

[scottishfield] 18/12/2024 15:27

Same thing by Saba at HRI too.

[quepassa] 18/12/2024 15:09

It will be interesting to observe how the good house of Baillie Gifford defend against the attack and affront launched today by Saba Capital on ScoMo sister-funds, BGUSA and EWI.

Personally, I don't think there is any case to answer.

ALL IMO. DYOR.
QP

[quepassa] 16/12/2024 11:47

1.

China is getting a worse rap than it deserves.

The TOP PERFORMER in Q3 (ending 30/9/24) for ScoMo was a Chinese stock, namely MEITUAN which gave a stonking quarterly Total Return of 46.7%

2.

Not such a bad year for ScoMo - arguably an excellent one.

Over one year to 30/11/24 - the share price has increased by a whopping 30.7% whilst significantly outperforming its Index (FTSE All-World Index) which rose 25.7%



Agree that 2025 is lining up to be a vintage year for ScoMo.


All imo. Dyor.
QP

[steeplejack] 16/12/2024 11:04

Well out of date,written in 2022,but worth a read in that it outlines the funds philosophy.




End Nov 24

Top ten holdings
Holdings % of total assets
1 Amazon.com 5.9
2 MercadoLibre 5.9
3 Space Exploration Technologies
4 Meta Platforms
5 NVIDIA
6 Tesla Inc
7 Ferrari
8 Meituan
9 Spotify
10 ByteDance Ltd.

Total

40.8

So Moderna has fallen out of the top ten due to chronic underperformance.What with China plus Moderna and Northvolt,this has been a tough year for SMT but with these problem areas falling down the pecking order,2025 could see further price recovery given the current discount to NAV.

[quepassa] 14/12/2024 07:03

The latest ScoMo Monthly Fact Sheet to 30th. November has just come out:-

1.

Total Fund Value is £14.53 billion

( impressively up from £13.65 billion at end prior month )

2.

Top Five holdings percentage of fund

1. Amazon 5.9%
2. Mercado Libre 5.9%
3. SpaceX 5.1%
4. Meituan 4.2%
5. Nvidia 4.2%


3.

Departures from Top ten Holdings

ASML
PDD Holdings

4.

New Entrants to Top ten Holdings

Spotify 3.0%
Bytedance 3.0%


5.

Other

-The value of the top holding of Amazon holding is £857 million

-SpaceX has moved from 4.8% of the fund to 5.1% (on this basis, it would appear that a major revaluation of SpaceX has not occurred)


-Discount to NAV narrowed marginally from 11.3% to 10.4%



ALL IMO. DYOR.
QP

[its the oxman] 13/12/2024 13:09

Yes and we should be around a pound higher at least. Much closer to nav. Discount seems excessive at the moment.

[quepassa] 13/12/2024 11:43

According to reports from Bloomberg, SpaceX has now formally agreed a tender price two days ago for $1.5billion of SpaceX shares at $185 per share valuing the Company at $350billion.

SpaceX shares were last sold just a few months ago at a much lower price of $112.

Sooner or later, one would imagine that this new price of $185 will feed through to the valuations used by ScoMo and BGUSA for their holdings of SpaceX shares.

It is not clear to me whether this new share price for SpaceX will be reflected at one of ScoMo's regular revaluation dates or whether this new Tender will qualify as a "trigger event" which would allow for an earlier revaluation.

Either way, one would likely expect a big uplift in the value of ScoMo's holding of SpaceX in the not too distant future.

It is possible -if not likely- that after revaluation, SpaceX will become ScoMo's top holding - albeit that it is a private/unlisted company.



ALL IMO. DYOR.
QP

[hazl] 12/12/2024 07:11

Interesting steeplejack.

[dickiehhh] 11/12/2024 19:41

Odd to see this down today?? when the Nasdaq is making a new high and SpaceX valuations being adjusted upwards. Especially when USA and EWI are trading at around par. Does anyone else think this looks good value?

[steeplejack] 11/12/2024 10:53

I stand corrected QP!!

So the high proportion of private companies is more of a Billie Gifford thing by all accounts than a specific feature of SMT.That puts lie then to the idea that a high private company content inevitably compromises a trusts performance.

I confess,I’ve never held BGUSA only PCT and ATT.Personally,i have no problem with a large slug of a portfolio being in private companies but some do.I don’t have large investment trust holdings.I look over the holdings of the more successful trusts periodically for ideas and then make my own stock decisions.Dealing direct with a broker in the US,i pay neither stamp duty or commission on US stock purchases which very much reduces the attraction of dealing in the UK equity market in general.

[quepassa] 09/12/2024 18:00

Interesting post.

But ....


BGUSA has a much higher portfolio percentage of private assets at 34% than ScoMo at 24%




It would appear that something else is driving ScoMo's trailing discount compared to that of sister-funds EWI and BGUSA - and perhaps not entirely the percentage of ScoMo's private/unlisted investments portfolio.


ALL IMO. DYOR.
QP

[steeplejack] 05/12/2024 08:41

Interesting comparison QP.The discount to assets for both ATT and Polar Capital remains around the 10%.As we all know,both Moderna and Northvolt have been the obvious handbrake on a more pronounced SMT price recovery this year.As much as one would like to believe that it'll all come right in time,its clear that sometimes SMT's more adventurous investments simply fall on very stony ground and that's implicit in the very nature of the fund ie Tesla was an inspired choice but others are not.When you have such a sizeable private company portfoilio,it makes you wander what else SMT has tucked away in that locker and it makes SMT enjoying a nil discount to assets (like BGUSA) unlikely.

[quepassa] 03/12/2024 12:21

I mentioned recently on 15th. November in Post 3749 that SpaceX was widely rumoured to be considering selling shares via Tender this December at a price which would equate to a new valuation of $255 billion. - Significantly up from the recent summer valuation of $210 billion.

Fresh and widely reported rumours in the press today, now suggest that the Tender price could be much, much higher which would establish a new higher valuation for SpaceX of $350 billion.

If this is so, it is excellent news for the major SpaceX holdings held in the portfolios of a triumvirate of Baillie Gifford Trusts - namely ScoMo, BGUSA and Edinburgh Worldwide.

It should also be noted that BGUSA and EWI are now trading at par to NAV if not slightly over.


all imo. dyor.
qp