Rit Capital Partners Share Discussion Threads

[ianood] 06/1/2023 15:44

Typical blasted Questor! Best contra indicator out there apart from Fool.

[dickiehh] 06/1/2023 14:40

Yes, Essential, nice. Hysterical over reaction yesterday to a nothing article. It's still on 20 percent discount and I think NAV will increase this month with the China bounce

[essentialinvestor] 06/1/2023 12:29

Bounced off support?.

[andyadvfn1] 06/1/2023 11:38

How can this be categorised as a wealth preserver, too volatile.

[dickiehhh] 06/1/2023 10:46

I think the Rothchilds know what they are doing. The long term performance of this fund has been exceptional.A wealth preservation fund doesn't have to just invest in eg. Government bonds and gold like Ruffer. It can also invest in higher risk uncorrelated assets which I think is what RCP has done differently. If anyone cares to look at the July report, most of the "unquoted investments" are into very large funds including hedge funds/strategies with billions of different types of assets. These have a different risk profile from the average quoted equity risk and is what makes RCP appealing in my view.

[mancman1] 06/1/2023 10:24

Th share price has been quite volatile since September when the decline started.
There have also been quite a few share buy backs, some as high as £22, but mostly
a bit above current levels. It would be very irresponsible of management to
be buying at these levels if they were concerned about the valuation of unquoted
shares, but I can see why many longer term investors might reappraise their view of RIT
in this rather troublsd world.

[essentialinvestor] 06/1/2023 10:04

Added another small amount.

Discount at circa 20% now allows for a lot,
If write downs on the unquoted to come - on saying this I am making anassumption RIT will operate at the higher quality end. Let's see.

If wider equity markets sell off then this
is highly likely to follow some of that.

[arja] 06/1/2023 09:37

yes , I sometimes make the point about whether the quoted NAV figures on TRust with unquoted investments can really be relied upon - hence they trade at a wide discount sometimes . From a chart viewpoint , it looks like it os near a support level

[cynicalsteve] 06/1/2023 09:26

Hidden or excessive exposure to unquoted equity is now common, many trusts that describe themselves as 'diversified' include a high proportion of it. It's what turned the poor performance of Woodford's funds into a disaster. I think unquoted equity belongs in the many specialist trusts that are available, other trusts and funds should stay away from it.

[essentialinvestor] 05/1/2023 16:09

Near £19.80 on the offer marked the recent low point, that may be a level to watch.

A lot also depends on wider equity markets, if they
sell off or bounce etc.

[dickiehh] 05/1/2023 12:41

Article also ignores that latest NAV already updates for September valuations when tech was at a low point. Is Questor really suggesting that the RIT Board failed to update non quoted asset valuations? Who says these non quotes assets are especially risky anyway? I doubt that Rothchilds would have signed off on high risks in this trust. Ridiculous over reaction in price to a media article with no proper research

[pragmatic4] 05/1/2023 12:33

Article also ignores the discount to NAV. This in now circa 19% - so a close on 40% discount on the unquoted portfolio (if this is the reason for the discount which it probably is).

[quattro44] 05/1/2023 12:20

The only counter to that is that Questor, having followed them for years, is almost universally incorrect in its comments or investment decisions.

[aeonflux] 05/1/2023 11:30

The wealth preservation trust poised to suffer big fallsQuestor investment trust bargain: this fund's swing towards unquoted stocks means there are safer ways to preserve your wealthWealth destruction is not something you associate with the Rothschild family. Yet shares in the investment trust established to manage some of its money have lost about 7pc of their value since we tipped them in March 2021 and we fear that much bigger losses are to come.This would be a disagreeable prospect for any fund but more so for RIT Capital Partners because it is widely seen as a "wealth preservation" vehicle; its aim is 'to protect and enhance shareholders' wealth over the long term".For much of the fund's 34-year existence we would have concurred, as we did when we tipped it. However, analysis of the portfolio now casts doubt on its wealth preservation credentials.One of the aspects we liked was the wide variety of assets held and the fact that no single one dominated. However, that has changed. Not only has one "sub-portfolio" grown over the past two years from 24pc to 45pc of the trust, which would in itself be cause for worry, but the assets involved – unquoted stocks – are at the riskier end of the spectrum. Worse, the prices of these assets as reported in the trust's books look poised for some severe falls.Privately owned companies are not automatically riskier than quoted ones. But certain unlisted businesses are, in particular those more recently established; the very name given to investment in less mature companies, "venture capital", gives a sense of the extra risk. Investing in more established private businesses is known as "private equity".The two points of concern are, first, that RIT has at least 18.5pc of its money in the less mature, riskier unquoted stocks, according to its interim report for the period to June last year – compared with just 1pc seven years earlier. Second, that the balance sheet value of these assets may be very out of date and, therefore, very wrong.

[aeonflux] 05/1/2023 11:29

https://www.telegraph.co.uk/investing/shares/wealth-preservation-trust-poised-suffer-big-falls/Article posted today on the 5th.

[dickiehh] 04/1/2023 20:04

Some big buys coming in this week. I would think December has been a good month with their exposure to China/Asia. Plus still on a big discount to NAV

[orinocor] 16/12/2022 08:42

That's a rotten 1.75% yield. I can understand why the discount is getting bigger as interest rates rise.

[elmfield] 15/12/2022 18:35

Interesting, going to be a buying opportunity but is it now, not convinced . Perhaps a limited buy after Christmas when things look bleak, not bleak enough yet?

[olliemagern] 15/12/2022 14:55

agree, but this first half of December probably moderates the total portfolio to around 2500p today. Trading at 2000p now looks oversold.

The last time RIT Capital was on a 20% discount was 1997 when net assets were 303p. That would have been a good time to buy and hold as well.