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Share Name Share Symbol Market Type Share ISIN Share Description
Chrysalis Investments Limited LSE:CHRY London Ordinary Share GG00BGJYPP46 ORD NPV
  Price Change % Change Share Price Shares Traded Last Trade
  -1.90 -2.54% 73.00 1,598,153 09:32:17
Bid Price Offer Price High Price Low Price Open Price
72.40 73.20 75.80 71.70 74.10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments -8.30 -1.75 418
Last Trade Time Trade Type Trade Size Trade Price Currency
09:33:28 O 2,060 72.7996 GBX

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Posted at 09/2/2023 08:20 by Chrysalis Investments Daily Update
Chrysalis Investments Limited is listed in the Equity Investment Instruments sector of the London Stock Exchange with ticker CHRY. The last closing price for Chrysalis Investments was 74.90p.
Chrysalis Investments Limited has a 4 week average price of 73.30p and a 12 week average price of 60.30p.
The 1 year high share price is 196p while the 1 year low share price is currently 51p.
There are currently 572,483,160 shares in issue and the average daily traded volume is 1,190,837 shares. The market capitalisation of Chrysalis Investments Limited is £433,369,752.12.
Posted at 30/11/2022 10:16 by captain stock
This a good update for sure. Starting to cost average now, well underwater on this.

GLA


Update on Performance Fee Arrangements

As previously notified to shareholders, the Board of Chrysalis and Jupiter have been engaged in discussions to revise the current performance fee arrangements in order to ensure long-term alignment between the management team and Chrysalis shareholder interests.

An agreement in principle has now been reached on revisions to the performance fee. In summary, these are:

-- Overall performance fee level reduced from 20% to 12.5% of the amount by which the adjusted net asset value exceeds the higher of the high-water mark and the hurdle rate

-- Performance fee to be satisfied in shares (excluding tax and other liabilities attributable to receipt of the performance fee which will be satisfied in cash), with a deemed issue price set at the higher of NAV and share price as at the year-end in respect of which the fee accrues

-- The shares allotted under the performance fee will be allocated by Jupiter solely to the members of the management team to ensure alignment of the team with Chrysalis shareholders

-- Current "high-water mark" set in September 2021 is maintained at the same level
-- Introduction of a deferred settlement structure; 25% of the shares due in any performance fee payment will be immediately issued with the remaining 75% of payment deferred by Chrysalis for between 3 and 5 years, subject to share price tests

-- A cap on the performance fee payable in any one year based on the performance fee payment not resulting in the Company's total expense ratio (TER) exceeding 3.75% in that year

Further details will be provided to shareholders in due course through a circular where shareholder consent will be sought by virtue of these changes being a related party transaction for the purposes of the Listing Rules. If approved by shareholders, it is expected that the revised arrangements will apply with effect from the start of the Company's current financial year.

Posted at 24/11/2022 15:58 by wad collector
Trading Update

Net Asset Value

The Company announces that as at 30 September 2022 the unaudited net asset value ("NAV") per ordinary share was 147.79 pence.

The above NAV calculation is based on the Company's issued share capital as at 30 September 2022 of 595,150,414 ordinary shares of no par value.

September's NAV represents a 15.69 pence (9.6%) decrease since 30 June 2022 and a 41% decline over the Company's financial year to 30 September 2022.

Key highlights

Key drivers of the Q4 NAV performance were:

-- Following the successful completion of primary funding rounds, and the more resilient performances of listed peers' share prices , Deep Instinct and Featurespace were marked up

-- Starling, Graphcore and InfoSum were marked down following a derating of their relevant listed peers

-- The Company's largest holdings continued to make excellent progress and trade well against a challenging backdrop, during the quarter to September. Revenue growth across the portfolio was strong over the financial year and is projected to be 53% on a weighted average one-year forward basis

-- NAV decline of 41% over the financial year to 30 September 2022, predominantly driven by the down-round undertaken by Klarna versus a 27% decline in NASDAQ and a 62% decline in the GS Non-Profitable Tech Index

-- Private assets contributed to a 71.86 pence decline in the NAV per share over the financial period to 30 September 2022 with listed assets contributing to a 31.90 pence decline. The NAV per share captures a weighted average mark down of individual assets' peak valuations of approximately 50% . Protection mechanisms extant in certain assets have limited the impact of these mark downs on the NAV per share

-- Five portfolio companies have raised a total of approximately $1.5bn over the calendar year to date. Despite extremely difficult funding markets, portfolio companies have continued to attract significant investment, including from new holders. The Investment Adviser believes this demonstrates the strength of the underlying investment cases. Of these five rounds, only that of Klarna was undertaken at a level below its prevailing carrying value, this having been written down by approximately 35% before the down-round. Chrysalis contributed $45m of primary capital to Starling Bank, Klarna, Featurespace and Deep Instinct, representing just 3% of total capital raised. The late-stage nature of the majority of the portfolio, and thus typically diverse shareholder lists, enables the Investment Adviser to be efficient in the allocation of capital

-- Chrysalis has a robust balance sheet. As at 17 November, the Company held approximately GBP67m in cash and also had a GBP 13m position in Wise, resulting in total liquid assets of GBP 80m

-- The portfolio is well funded, with 35% of the portfolio now profitable; 32% funded through to profitability based on company budgets; and a further 14% with a cash runway of approximately two years. This represents a substantial improvement from our previous update. On this basis, the Investment Advisor believes the foreseeable, likely future funding requirement across the portfolio is approximately GBP20m
Investment Adviser Comments

Richard Watts and Nick Williamson (co-portfolio managers) comment:

'We are very encouraged that in an extremely challenging market, five of our largest holdings have raised $1.5 billion in aggregate over the calendar year to date, with some welcoming new high-quality investors onto their share registers. We believe this demonstrates the ongoing strong performance of these assets and their compelling investment cases. Furthermore, the robustness of our valuation methodology is demonstrated by the fact that four of the five funding rounds were completed above the prevailing carrying value in Chrysalis.

The macroeconomic and geopolitical backdrop is uncertain, but we remain confident that many of our assets will continue to disrupt the huge markets in which they operate; our top six holdings have a sub 1% market share of their aggregate total addressable markets. In our experience, disruptive companies generally compound strong rates of growth throughout the economic cycle, and we believe this will be reflected in our NAV over time. Wise is a very good example of this, with analysts currently forecasting that the company will generate the same rapid rate of revenue growth through 2022 as when Chrysalis first invested in it four years ago.

Many of our largest holdings have evolved into market leaders since the point of investment, and we are confident in the outlook for these companies. The investment team has had a particular focus on working with portfolio assets over the course of 2022 to ensure that they are appropriately balancing growth and profitability considerations and are sufficiently capitalised to deliver on their plans. This should translate into successful exits and strong returns for our shareholders over the medium term.

Chrysalis has a portfolio approach to diversification to mitigate stock specific risk, and this has been borne out by the current macroeconomic backdrop, which has affected different assets in different ways. For example, our consumer exposure has seen a negative impact from inflationary pressures, which in turn have triggered a rising interest rate environment, to the benefit of some of our financial exposure.

Our original premise when Chrysalis was launched was that, while not all investments would be outright winners, a diversified portfolio would withstand market shocks and the most successful investments would offer the potential for multiple returns on invested capital, ensuring an attractive overall return for investors. We believe this premise still has validity."

Posted at 01/9/2022 05:40 by spectoacc
One of the worst tips I've ever read.

"...A drastic fall in the value of such a portfolio was inevitable, no matter how well it was run or how strong the prospects of the individual businesses in it."

Yet tip it they did, at a premium, and it's now down 70% from there.

No mention of the vast sum Jupiter ripped out of it for unrealised "gains". "Well run" indeed! Nor how much of it Jupiter/Jupiter entities still own.


"...Valuers now advise the board, which makes the final decision.".

It's the last part of that sentence which is key.


"Partly, in Questor’s view, this reflects the fact that the NAVs of trusts that invest in unquoted assets are updated with a time lag that usually runs to three or six months."

They've got it a*se about t*t. We're in the foothills of the downgrades to valuations, including many that won't pull through or be able to raise new funds. The lag doesn't mean the share price is failing to reflect improvement - it means the share price is anticipating what's coming, which is more interest rate rises, more big falls.

They talk about Starling Bank reaching profitability, yet no mention of what it's being valued at?

100% revenue rises for some holdings, but no mention of what those revenue rises are costing?

I doubt every CHRY holding is going down the toilet, but not difficult to pick out several that are - Klarna is a Klaxon. Starling are on this weird PR campaign to deflect criticism of BBL fraud.


"We referred to the recovery in growth and tech stocks over the past two months. But there is no sign of it in the Chrysalis share price, which stands at a record low of about 73p."


We so haven't seen the bottom of the market, nor the end of comedy valuations in "growth" yet. At some point, CHRY's share price will reflect a good each-way bet for recovery. Averaging down at -70% isn't it IMO.

The whole thing's been very Woodford, and WPCT/SUPP has been tipped all the way down too.

Posted at 01/9/2022 05:26 by unastubbs
From The Telegraph today


Investors need nerves of steel owning this fund – but this really is the best time to buy

You are always running a risk buying – or indeed tipping – an investment trust that is trading at a premium, and Questor’s advice to readers in June last year to buy shares in Chrysalis Investments at an 18pc premium has rather proved that rule.

That premium has now morphed into a discount of about 55pc. As is often the case with trusts, movements in the discount or premium amplify what is happening to the value of the actual portfolio – the net asset value – and in the case of Chrysalis, the NAV has also fallen severely since our tip.

Take the two things together and we are in the red to the tune of about 70pc.

The rational course of action now is to seek to understand the reasons for the trust’s poor performance and form a dispassionate opinion on the chances of a recovery. To do this, we need to understand what Chrysalis does and appreciate the extent to which its investment strategy exposes it to forces beyond its control.

It invests in unquoted stocks, mostly newish businesses that seek to disrupt existing markets via the use of innovative or superior technology.

However, its holdings are not start-ups: they are more established, often profitable, and in some cases close to seeking a listing (some of its holdings have already floated).

In the wider economic and stock market circumstances of the past year – the return of inflation, rising interest rates and the consequent turn of the tide away from “growth” stocks and into “value” – a drastic fall in the value of such a portfolio was inevitable, no matter how well it was run or how strong the prospects of the individual businesses in it.

We have written many times about the unavoidable difficulties of valuing unquoted assets, but whatever valuation method you use and whatever its shortcomings, the only possible move in value of a portfolio of young technology stocks over the past year has been down.

In fact, Chrysalis has put a lot of effort into valuing its assets appropriately and independent valuers now advise the board, which makes the final decision.

To sum up, the value of the portfolio has suffered over recent months as the result of powerful forces in the financial markets that its managers could never have influenced. But what are its prospects now?

While we have seen a decisive change in mood back in favour of growth and tech stocks in the past two months, we cannot be sure it will continue. What we can do is look at the trust’s holdings and get a sense of their prospects for profitable growth over the years ahead, in the hope and belief that once the market has calmed down it will be the fundamentals of individual businesses that determine their value once more.

In a trading update last week, Chrysalis reported “strong revenue growth across the portfolio and excellent trading among [its] largest holdings”.

It said Starling Bank, the largest holding at 20pc of assets, had reported its first full year of profitability with pre-tax profits of £32.1m. But on an annualised basis, its current pre-tax profits are more like £92m, thanks to year-on-year lending growth of 72pc.

The second largest holding, Wefox, a “digital insurer” that makes up 17pc of the trust, “grew revenues to more than $320m (£275m) in 2021 and is on track for revenues to exceed $600m by the year end, representing growth of almost 100pc”, Chrysalis said.

Brandtech, a marketing technology company that accounts for 9.4pc of the portfolio, has also “continued to perform exceptionally well in both revenue and profit growth”, it added.

We referred to the recovery in growth and tech stocks over the past two months. But there is no sign of it in the Chrysalis share price, which stands at a record low of about 73p.

Partly, in Questor’s view, this reflects the fact that the NAVs of trusts that invest in unquoted assets are updated with a time lag that usually runs to three or six months.

But there is nothing to prevent improved investor sentiment lifting the share price (in other words, narrowing the discount), and the fact that this has not happened suggests to this column that investors have given up on the trust.

This feels like the point of maximum pessimism – the best time to buy, even if strong nerves will be needed.

Questor says: buy

Ticker: CHRY

Share price at close: 71.9p

Posted at 23/5/2022 10:15 by speedsgh
Quarterly NAV Announcement and Trading Update - HTTPS://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=4108307&;lang=en-GB&companycode=uk-jup&v=MerianChrysalisInvestment

Net Asset Value

The Company announces that as at 31 March 2022 the unaudited net asset value ("NAV") per ordinary share was 211.76 pence.

The above NAV calculation is based on the Company's issued share capital as at 31 March 2022 of 595,150,414 ordinary shares of no par value.

March's NAV represents an 11.0% decrease since December 2021, and a 1.8% increase since the Interim NAV as at 21 March 2022. The following investee companies were the most significant drivers of the movement in NAV over the quarter:

· The Brandtech Group ("Brandtech") -saw an upward revision in valuation, supported by revenue and profit growth that has continued at what the Investment Adviser considers to be exceptionally strong levels, both on an absolute basis, and in comparison to listed peers;

· Starling Bank ("Starling") - saw a modest increase in valuation, and is now held at a valuation in line with its recent primary round of £2.5 billion;

· Klarna Holding AB ("Klarna") - notwithstanding its strong Gross Merchandise Volume ("GMV") growth over 2021 of 51% in US dollar terms, its valuation has been written down materially, mainly reflecting weakness in the share price performances of its listed comparators. The Company can confirm that the March NAV is based on a valuation for Klarna of approximately $30 billion;

· Deep Instinct and InfoSum - both saw write downs in valuation, mainly due to weakness in their listed comparative sets; and

· THG plc ("THG") and Wise plc ("Wise") - which saw share price falls of 60% and 35% respectively.

Investment Adviser Comments

Richard Watts and Nick Williamson (co-portfolio managers) comment:
"We are very pleased with the robust rates of revenue growth - approximately 80% per annum on a blended basis - we are seeing across the portfolio, as we believe it will be the key determinant of future NAV performance. Many of our companies are only in the early stages of making an impact on their sizeable addressable markets, which we expect to support their growth aspirations into the medium term.

Listed market valuations have remained under pressure, a trend which started in September 2021 and has continued into the current quarter, reflecting uncertainty over a number of key variables including economic growth, interest rates and inflation. It therefore feels prudent to adopt a conservative stance with respect to strategy, and a key focus for us over the coming quarters will be supporting our companies in pursuing their growth objectives.

As detailed above, we have given more colour on the valuation levels of our two largest assets, Klarna and Starling. Together, these holdings account for approximately 40% of the Company's gross investable assets, which should give investors significant valuation certainty regarding a material part of the portfolio."

[continues]

Posted at 21/2/2022 08:01 by speedsgh
NAV down to 237.86p (30/9/21: 251.96p). Detractors THG, WISE & Klarna...

Quarterly NAV Announcement and Trading Update - HTTPS://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=4044837&;lang=en-GB&companycode=uk-jup&v=MerianChrysalisInvestment

Outlook

Conditions in the private growth market remain buoyant, with minimal evidence that the turmoil in stock markets is feeding through into significant curtailment of demand for high-quality assets, underpinning the Investment Adviser's view that investment horizons are longer than those typically prevalent in public markets. With a robust liquidity position and a number of major positions in the portfolio demonstrating strong growth, the Investment Adviser is confident in the ability of Chrysalis to drive meaningful NAV growth in the medium-term.

Investment Adviser Comments

Nick Williamson and Richard Watts (co-portfolio managers) comment:

"The decline in NAV over the period was primarily driven by the underperformance of our listed names, as well as a modest mark down in the valuation of Klarna. We have commented extensively regarding the performance of THG previously but, despite delivering strong numbers, the extent of Wise's de-rating is disappointing. We believe it has been caught up in the wider sell-off of technology and growth companies. Elsewhere, the unlisted portion of the portfolio has seen some strong performances, particularly from Starling and wefox, which is based on their exceptional rates of growth that currently show little sign of diminishing. The overall impact on NAV has been further limited by some of our structures, which help to mitigate downside. Despite on-going volatility in listed markets, we do not see any fundamental deterioration in the growth prospects of the portfolio, which we believe is the most important determinant of long-term value creation for our investee companies.

Wise is an exemplar of what we look for: a company sharing the benefits of its technology between consumers, via lower prices and a better experience, and shareholders, via improved financial results, which has strong network effects. As the company becomes bigger the network effects get stronger as the company shares the value with users in terms of lower fees, faster transfer speeds and new currency routes, for example, and, in this way, creates a flywheel effect to drive continued growth. Our belief is that the company should not deviate from this strategy, after all it is what has made it so successful. Notwithstanding its strong operational performance, the stock market is now valuing Wise at approximately half the level as of September. We are hopeful that this valuation is just a moment in time.

Many of Chrysalis's other investments, such as Klarna, Starling Bank and wefox, for example, have similar network effect characteristics to Wise and are also disrupting huge markets. As we have stated previously, we firmly believe that we are still at the start of digital disruption and, if we are correct, we should expect our portfolio of digital market leaders in their sectors to provide exceptional long-term growth. It is our strong belief that this is the key attraction of Chrysalis; our investee companies are in the foothills of a significant revenue opportunity.

Recent history suggests that stock markets can be a very unforgiving environment for those companies prioritising growth over near-term profitability and the market phases where there is little appetite to invest in these types of businesses can dramatically increase their cost of capital, via lower share prices, and inhibit their ability to continue to grow quickly. It's for this reason that Chrysalis is an attractive partner for our investee companies. The ability to provide long term, supportive capital is critical in enabling these highly disruptive companies to invest and grow. If stock markets fail to appreciate the true value of these businesses many more will likely choose to remain private for longer or, indeed, return to the private market. Chrysalis is very well positioned for such an outcome."

Posted at 26/1/2022 14:39 by speedsgh
HTTPS://citywire.com/investment-trust-insider/news/oakley-leads-bargain-trusts-rally-after-blockbuster-results/a2377802

... Chrysalis looks over-sold

Chrysalis Investments (CHRY) gave another example of this today with annual results confirming what house broker Numis called the ‘outstanding’ but previously-announced 57% NAV growth for the year to 30 September.

However, shares in the £1bn closed-end fund, which invests in fast-growing tech companies before they float on the market, such as credit provider Klarna, Starling bank, and money transfer specialist Wise, have suffered in the recent tech retreat, losing a third of their value since the financial year-end.

Shares in the company run by Jupiter smaller company fund managers Richard Watts and Nick Williamson rose 3.2% to 192p, down from 267p in September, as analysts considered the fall had gone too far given the strong operational performance being reported by the company’s main investments.

Stifel’s Iain Scouller said yesterday’s 186p closing price assumed a big decline in NAV and future prospects. Rating the shares a ‘buy’, he said: ‘Even if the forward NAV were to decline by 20% to around 200p, the share price is almost a 10% discount, which we think offers value and scope for a sharp rebound when market sentiment improves.’

Numis, Chrysalis’s corporate broker, estimates the NAV per share has fallen 13% to 220.5p since September, which would put the shares on an even cheaper 16% discount.

Posted at 26/1/2022 08:06 by speedsgh
Annual Financial Report - HTTPS://www.investegate.co.uk/chrysalis-invs-ltd--chry-/rns/annual-financial-report/202201260700066422Z/

Some excerpts:

"Despite recent market weakness in growth stocks, including technology names, we believe Chrysalis is well positioned; we think a number of our major holdings are attractively valued versus their listed peers, are growing very quickly and, in many cases, are digital market leaders. In the current febrile market environment, our focus remains on supporting our companies to continue to build and grow. We firmly believe that we are still at the start of digital disruption and our purpose of identifying and enabling the most innovative technology enabled companies to disrupt huge addressable markets will provide exceptional long-term returns to shareholders."

From the Chairman's statement:
"Our structure enables us to take a long-term view to value creation; public markets are often shorter term in outlook and sometimes growth businesses, particularly those where growth has been prioritised over margin maximisation, struggle to make the case for investment to those public shareholders, who are more used to slower-growing, profit-maximising companies. We believe that all our listed investments have significant upside from their current market prices. However, if public markets continue to undervalue assets, Chrysalis does have the flexibility to maintain its shareholding if companies choose a return to the private marketplace to continue their growth development."...

"The Company's share price rose 84% over the year to 267p, and, notwithstanding the post year end correction in technology stocks, it is still showing a substantial gain over the period from its opening level of 145p. While at the time of writing growth stocks appear to be out-of-favour with investors, experience shows how quickly market sentiment can swing. Fundamentally, the aim of Chrysalis is to invest in companies which can generate significantly faster growth rates in the medium-term than those typically available in listed markets. This should ultimately provide the Company the ability to outperform stock markets in share price terms."

From the Investment Managers report:

Re THG
" However, into period end and post period, the share price suffered heavy selling pressure reaching c121p in January 2022. While well documented, the reasons appear to centre around:
· concerns over corporate governance;
· uncertainty surrounding the possible exercise of the SoftBank option to buy 19.9% of Ingenuity and the implicit £4.5 billion valuation of the division, as well as prospects for its future growth; and
· a modest, downgrade to EBITDA mainly FX driven.

In response, THG has:
· made several moves designed to improve corporate governance, including: a commitment to rescind the founder's Golden Share, which effectively prevents an unwanted takeover in the next two years, and splitting the role of CEO and Chairman, with a process underway to identify an independent candidate to fill the latter;
· appointed a SoftBank representative to its board; and
· upgraded expectations for Ingenuity growth.

As the representative of major shareholders, we engaged with the company to understand and support its plans, particularly in respect of corporate governance, and we are encouraged by the company's optimism surrounding Ingenuity. As part of our normal process, we have revisited our investment case and believe there has been no substantive change to the investment thesis since IPO. Given the current valuation, we believe there is significant upside potential in THG shares, and as a result, have topped up the Company's position in THG following the year end."...

Posted at 29/11/2021 08:29 by speedsgh
Update on Performance Fee Arrangements - HTTPS://www.investegate.co.uk/chrysalis-invs-ltd--chry-/rns/update-on-performance-fee-arrangements/202111290701078009T/

The Company announces that it has, today, entered into an agreement with its investment manager, Jupiter Unit Trust Managers Limited ("Jupiter") to settle 54 per cent. of the performance fee amount that will be payable to the investment manager in respect of the period to 30 September 2021 in ordinary shares issued by the Company. The remaining 46 per cent. of the performance fee amount will be settled in cash.

The issue price of those shares is expected to be 267p per share (being the closing share price on 30 September 2021) which is a 9.4 per cent. premium to the share price as at close of business on 26 November 2021 and a 6 per cent. premium to the unaudited net asset value per share as at 30 September 2021. To the extent that the audited 30 September 2021 net asset value per share is greater than 267 pence per share, the issue price will be increased to an amount equal to the audited 30 September 2021 net asset value per share.

The shares are expected to be issued on the date of publication of the Company's audited financial statements for the year ended 30 September 2021, which is anticipated to be in January 2022. They will be issued on a non-preemptive basis utilising the Company's existing authority to issue shares.

The shares issued to Jupiter are intended to be used by Jupiter as part of the deferred remuneration arrangements of its staff, including the Company's portfolio managers, and will be subject to Jupiter's usual vesting conditions which incrementally release shares to the qualifying staff over a three year period.

The Company's chair, Andrew Haining, commented:
"The Board is pleased to have accepted this proposal and material commitment by Jupiter on behalf of the fund managers and other staff members, which further increases their alignment with shareholders in pursuing long-term success for Chrysalis."

Posted at 13/10/2021 14:06 by speedsgh
Chrysalis and Jupiter losses mount as THG crashes after chief attacks short sellers - HTTPS://citywire.co.uk/investment-trust-insider/news/chrysalis-and-jupiter-losses-mount-as-thg-crashes-after-chief-attacks-short-sellers/a1568247

THG (THG) shares have shed well over a third of their value in less than 24 hours after a presentation to reassure investors about the e-commerce group’s prospects backfired spectacularly, dealing a blow to Chrysalis Investments (CHRY) and other Jupiter funds with big stakes.

Chief executive and co-founder Matt Moulding hit out at short sellers at a capital market’s day yesterday, widely seen as a mission to justify the worth of the group’s Ingenuity technology unit and address negative perceptions after the shares had slid throughout this year.

Instead, the shares plunged as the afternoon event proved a bust, eventually closing down 35% on Tuesday. Falls continued as markets opened today, with the stock down a further 3.1% to 276p at 11am amid volatile trading.

‘The City has totally lost confidence in this company and its founder,’ said Markets.com analyst Neil Wilson.

Formerly known as The Hut Group, the owner of Myprotein and a diverse suite of beauty and other brands was an investor darling when it floated a year ago, but challenges have mounted this year amid a wider slowdown in the e-commerce sector with supply chain and other issues biting.

Pressure grew after a recent ‘short’ note written by The Analyst, a subscription-based research house run by former Fidelity analyst Mark Hiley, which was an early critic of fraudulent German payments company Wirecard.

Emerging over the weekend, the report recommended investors bet against the stock, particularly criticising the inflated prospects of Ingenuity, a white-label platform helping other retailers run their operations which had been crucial in attracting Japanese group SoftBank’s investment earlier this year.

‘I think there was a lot of anticipation given the recent short note but the capital markets day could not fully address investors’ concerns. The lack of visibility is becoming an issue,’ said Shore Capital analyst Eleonora Dani.

Having floated at 500p in September 2020, the shares now stand at barely a third of an 800p peak at the beginning of this year.

THG’s tumble also dragged down Chrysalis, which fell 2.6%, or 6p, to 225p today, building on similar losses the day before. That comes after considerable air had already come out of the shares of the private and early-stage company investment vehicle in recent weeks, putting them down more than 15% over a month, though investors at launch three years ago have still comfortably doubled their money after a string of other successes.

THG made up 7.7% of Chrysalis’s portfolio at the end of June, having taken profits around the turn of the year.

Open-ended funds also run by Jupiter’s small and mid-caps team, of which Chrysalis managers Richard Watts (pictured) and Nick Williamson are part, have also been hit as THG and fast-fashion online retailer Boohoo (BOO) have pulled back sharply.

Watts’ £3.3bn Jupiter UK Mid Cap fund, which had 6.2% in THG at the end of August, has lost 5% over three months, about 6% behind the wider UK market and placing in the bottom quarter of its sector peers. The timing of funds pricing means the latest falls are not included.

Jupiter as a group is the sixth-biggest holder of THG, owning around 6.3% of the shares, according to Refinitiv data for the end of March. The stock is also a significant 3% position in Daniel Nickols’ £1.4bn UK Smaller Companies fund.

Other UK-based funds with significant weightings in the stock include the BMO UK High Income (BHI) investment trust, whose shares were little changed, and the firm’s Select European Equity fund. Both run by Philip Webster, they had 4.4% and 2.4% positions respectively at the end of August according to Morningstar data.

Chrysalis’s corporate broker Numis calculated that, following recent weakness, yesterday’s tumble in THG shares would have taken a further 1.9% out of the portfolio’s net asset value (NAV).

Allowing for movements in all quoted holdings, including Wise (WISE), and performance fees, analyst Andrew Rees estimated the NAV stood at 226.9p per share, a 2% premium to last night closing price of 231p.

Rees said struggles at a high-profile unquoted holding – which also became its first stock – were ‘clearly disappointing’.

‘Given Chrysalis’s focus on high-growth businesses, we never expected it to always be plain sailing,’ he said, pointing out that small-companies lender Growth Street had already been wound down.

‘We would expect the situation with THG to rumble on for some time, and may add volatility to the NAV, albeit we estimate THG is now just a 3.6% position.’

THG, which has a trading update due on 26 October, told the market this morning there was ‘no notifiable reason’ for the scale of its share price fall.

Jupiter declined to comment.

Chrysalis Investments share price data is direct from the London Stock Exchange
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