Baillie Gifford China Gr... Share Discussion Threads

[ali47fish] 11/11/2020 19:48

could this be the causeodf the drop also

from guardian 11 nov 20
Shares in China’s technology industry have taken a tumble after Beijing’s market regulator took its first major step towards tackling the monopolistic power of its tech giants.

The State Administration for Market Regulation’s new draft rules will, for the first time, define what constitutes anti-competitive behaviour – covering pricing, payment methods and the use of data to target shoppers.

These anti-monopoly rules are designed to ensure fair competition in the web space and prevent internet platforms from dominating the market or using methods to block fair competition.

The move seems certain to put e-commerce marketplaces and payment services under closer scrutiny … and investors have reacted by ditching tech shares sharply.

The e-commerce giant Alibaba’s shares, for example, have slumped by 9% today, while its rival JD.com is down more than 8%.

The news came as China’s web giants were gearing up for Singles Day, the annual online sale that is their biggest day of the year.

Bloomberg has calculated that more than $200bn has been wiped off China’s tech giants in the last two days.

It reports that the antitrust clampdown triggered a wave of selling (only a day after vaccine optimism triggered a rotation out of tech stocks).

[vacendak] 11/11/2020 18:17

From the latest RNS, 150K shares have reached the market today, this may have increased the drop in share price

[vacendak] 11/11/2020 16:12

Considering the stupid premium values of late, they can be very volatile depending on which date/ time is chosen. So my values may be off.

[vacendak] 11/11/2020 16:09

My spreadsheet. (Price-nav)/nav with the dates aligned: previous close and NAV for the previous day.

I assume the websites with tracking premiums/discounts use the current share price and latest NAV whenever it is from (not everyone reports daily NAV).

[ali47fish] 11/11/2020 15:53

vacendak- which website do you use to check the discount/premium or if you calculate yourself please tell me how?

[uapatel] 11/11/2020 10:40

Yep, seems like some of the froth has been taken off. Will look to add back a bit if it drops further.

[vacendak] 11/11/2020 09:35

Just a bit of air leaving the over inflated balloon I hope.
The premium did go slightly over 30% at the close on Monday, with the NAV released yesterday.

Long term, a comfortable premium should be around 5%. High enough to feel smug by holding it, not too pricey to enter or top up. It would also be a cost effecttive threshold to unload treasury shares or emit new ones.

[uapatel] 11/11/2020 08:23

China Tech stocks taking a hit today. Reduced my position here, as also have exposure in my Pacific Fund.

More of watching brief now as the premium is way too high.

[uapatel] 10/11/2020 08:46

Interesting podcast (To me anyway). Covers the BG Asia focused funds/trusts.

[montynj] 10/11/2020 08:39

Crazy premium to NAV.....SELL

[topvest] 09/11/2020 15:17

I've sold half of mine for a x4 profit in 10 years. Not too bad at all thanks to BG. Premium to NAV is kind of ridiculous though!

[vacendak] 09/11/2020 13:51

True!

To be fair, everything is up today, I do have LWDB (Law Debenture) up by about 10% and BCPT (commercial property) by 11%, but these two would need to be put in the "recovery after massacre" box. The rest of the pf is up by a decent but more believable 3% to 5% on average.

Now BGCG is clocking at 13%. :)

So by tonight, BGCG will become my biggest holding... needless to say that when it was WPC, it was not even close. I will need to trim that at some point, but not today.

[uapatel] 09/11/2020 13:24

Could do with some of the magic beans this trust is using on some of my other funds. Lol.

[topvest] 08/11/2020 16:38

Lindsell Train Investment Trust had warned about a premium for c5 years every time they reported. In their case, it was due to a highly cautious valuation of Lindsell Train Limited which would have been worth approx. twice as much if listed. In this case, there is no logic in a significant premium. BG are playing the bubble. Great whilst the party lasts! Excellent here as delivering excellent shareholder value, but I'm considering top-slicing half my small holding in the near future.

[vacendak] 08/11/2020 15:56

People talking about the stupidly high premium values on BGCG and other BG ITs.

[vacendak] 06/11/2020 19:17

I have recently poured a bit of money on USA, another Baillie Gifford growth fund, at a 7% premium. I am still uncomfortable having paid more for something than it was worth. Yet, I am already comfortably in the black.

Now, BGCG was at 17.7% premium at close yesterday.

I think it is Lindsell Train that trades at 50+% premium, or was relatively recently. There were rumours the managers were even telling people not to buy!

So, BGCG could potentially trade at a sillier premium. Hence buying now could be a "bargain" compared to a 30% premium in a few months.

After today's dump, they still have about 34% of the shares held in treasury, due to the exit offered to WPC shareholders and the stash from WPC. They are offloading this at prices above NAV, so pure cash. This cash in turn seem to be well invested as the NAV does tick-up nicely too. The market cap can grow nicely without much cost. Offloading treasury shares is less costly than issuing new ones via placements. As long as they do not run out of ideas for investing, growing the trust is good news and will carry on magnifying the gains.

The good thing about WPC was that it was not geared. BGCG has therefore no gearing and, again as long as they can offload treasury shares, there is not need for that.

So, it all looks good right now... still 17.7% is pretty silly! :)

[ali47fish] 06/11/2020 18:58

the managers here are very experienced in the sector and manage a sister oiec fund- it is frustrating for me to have invested at a prtemium and can't add as it goes up-i want to ask if the premium matters if the performance is so stellar? please comment if you have knowledge of this matter!

[uapatel] 05/11/2020 16:01

Noticed you had started a position there.

I did look at it earlier for my ISA, has some good companies in its holdings. (Standout to me was SpaceX for something different), but i already hold Edinburgh Worldwide (ISA) plus Scottish Mortgage (SIPP), so bit over doing that position.

Another up day for BGCG. Truly amazing performance at the moment.

[vacendak] 05/11/2020 15:24

I have now taken a small position in USA another BG trust (BG US Growth).

More or less the same sugar rush behaviour as BGCG at the moment, only mildly tamer, as the trust already has a couple of years of existence.

[vacendak] 04/11/2020 13:08

Oh, yes I forgot that technically the Ant Financial IPO is a bust (temporatily at least) as it has been at the very least delayed. Alibaba dropped in response of course... yet BGCG is safely up as if nothing had happened. The NAV only dropped 2p yesterday according to the latest RNS.

So the interest must lie beyond the Alibaba/Ant story.

[Edit]
And a 14.8% premium for yesterday's close. Totally mad...

[uapatel] 04/11/2020 12:49

Good find that. Thanks

[vacendak] 04/11/2020 12:41

Some more comments on what is in the portfolio.