Herald Investment Share Discussion Threads

[shavian] 11/5/2018 11:32

Nice 7% rise in NAV over past 30 days, with the discount narrowing from about 15% to 9% today. Still a bargain imho

[quepassa] 28/4/2018 08:14

Very happy with the performance of this trust and it is very well and professionally run.

Deserves a big narrowing of discount in my view.

QP

[amt] 28/4/2018 07:15

QP I agree. This trust has a fantastic record over short and longterm. It should be at a premium not a discount.
Up 6 fold since 2008.

[quepassa] 24/4/2018 07:46

They certainly know how to pick 'em!

Herald have a c£8.5million position in CityFibre which has received a recommended Cash BID this morning at a 93% PREMIUM to yesterday's close.

A nice little early morning £8m PayDay for Herald - but seriously it shows that they have some great prospects within their small-cap portfolio....

....and one of the reasons why I remain gung-ho on this IT and reiterate my personal view that it is undervalued, under-appreciated and under the radar.

....and the big discount-to-NAV represents a real bargain.


ALL IMO. DYOR.
QP

[quepassa] 23/4/2018 12:55

NAV is now a tad under 1400p compared to an share price of 1230p.


A whopping discount to NAV of 12%.

In my view, wholly undeserved and meriting a re-rating by the market on grounds of excellent multi-year performance by this excellently run Investment Trust.

In my view, this discount represents a great bargain.




ALL IMO. DYOR.
QP

[quepassa] 22/4/2018 09:51

New ALL TIME HIGH this week.

Great recovery since the small cap sell-off early in the year.


ALL IMO. DYOR.
QP

[amt] 20/4/2018 08:42

Discount should also reflect the performance which in Heralds case has been absolutely brilliant over both short and long term so should justify a premium.

[weatherman] 09/4/2018 18:14

The difference seems high compared to historical records. If the net assets have risen strongly, then the balance of buyers and sellers may not yet be in balance. Which looks like a good buying opportunity - all imo.

[rambutan2] 05/4/2018 14:28

Always worth remembering to take into account, and the reason why HRI will usually carry a double digit discount. From pg64 of the annual report:

Equity Securities
The Company’s unlisted investments are not readily realisable, but these only amount to 1.3% of the Company’s total assets at 31 December 2017 (2016 – 1.4%).

In practice, liquidity in investee companies is imperfect, particularly those with a market value of less than £100 million. To reduce this liquidity risk it is the policy to diversify the holdings and generally to restrict the holding in any one company to less than 10% of the share capital of that company. Furthermore the guideline is for no single investment to account for more than 5% of the assets of the Company.

The market valuation of each underlying security gives an indication of value, but the price at which an investment can be made or realised can diverge materially from the bid or offer price depending on market conditions generally and particularly to each investment. 20.1% (£178 million) (2016 – 22.8% (£158 million)) of the portfolio is invested in listed stocks with a market capitalisation below £100 million, where liquidity is expected to be more limited. If these stocks had on average a realisable value 20% below the bid price the value of the total fund would be adversely affected by 3.7% (2016 – 4.0%).

[shavian] 12/3/2018 11:00

NAV up to 1407p on Friday, giving us a 17% discount. What a bargain. Buying some more for the kids' ISAs this week.

[quepassa] 06/3/2018 09:31

After several months of poor investment sentiment towards the UK small and micro-cap sectors, it seems to me that sentiment is firming again.

ALL IMO. DYOR.
QP

[quepassa] 27/2/2018 15:41

Fantastic recovery to 1220p from the late January market correction which saw HRI fall to 1100p.

I believe that today marks a new All-time-high.

however with a NAV of 1375p, the discount-to-NAv of 11% makes this Investment Trust a real bargain, especially considering its outstanding pedigree, track-record and excellent stock-picking.


ALL IMO. DYOR.
QP

[robsy2] 21/2/2018 07:43

The annual report is an excellent read. The fund is well run and a long-term hold for me and the discount is quite an opportunity in itself.
This is a hot, focussed fund that looks and finds opportunity on a global scale.
R2

[amt] 15/1/2018 08:18

The phenominal rise of Versarian and Zoo should help a bit here.

[shavian] 12/1/2018 08:34

Probably more due to biggest holding IQE being hammered by shorters on the back of unrelated bad news in semiconductor sector. Great time to top up on HRI and IQE imo. Also VRS due another surge as the market wakes up to little gem.

[garth] 10/1/2018 17:54

NAV continuing to rise, discount growing, share price starting to trend sidewise having broken out of its seemingly inexorable rise. Concerns about the wider market looking toppy?

G.

[amt] 08/1/2018 07:46

Why is the discount so large at 15% Some ITs are at a premium and given the fantastic performance I am surprised this isnt at a premium.

They have a great record of discovering small companies with huge growth opportunities Zoo and VRS being recent examples.

[anley] 05/12/2017 17:23

YES I am in these and have been for many months.

Miton and Herald with one VRS director now control 28% of VRS and I don't have to tell you what has happened to the share price of VRS in 2017.

[garth] 05/12/2017 08:32

Anley,

Miton Smaller companies?

G.

[tiltonboy] 04/12/2017 11:54

anley,

HRI publish NAV daily.

[anley] 04/12/2017 11:28

You will have to wait until the next time they publish portfolio figures.

Nevertheless the 5% VRS stake which Herald bought for 15/18p per share have risen to 80p this morning.

Miton were the other trust which bought a 10% stake at the same time.

[tiltonboy] 01/12/2017 22:29

anley,

VRS doesn't feature in the top 20 holdings of HRI, and is insignificant in the scheme of things. It might add a few coppers to NAV at best.

[anley] 01/12/2017 15:45

This trust owns 5% of the best performing AIM company called Versarien (VRS) so when the next NAV calculation is made it will show a good uplift just based on this one company.

In any case the shares are always worth a buy because of the way its run by Katie Potts.

[amt] 30/11/2017 16:24

Blimey QP appears here aswell as EZJ. Glad you are a supporter. This has been my favourite investment trust for years and must be one of if not the best performing in UK and yet it has this large discount which looks bonkers to me.

[rogerbridge] 22/11/2017 10:51

This is a lovely I.T. with a great manager who looks at the long term. IQE and VRS holdings must be helping.