Scottish Mortgage Invest... Share Discussion Threads

[elbrus55] 04/4/2023 07:19

It is an odd comment because they don't really invest in what would normally be described as early stage private equity regardless of any % PE limit.I suggest it would be more helpful to base any view about SMT by looking at their current investments rather than thinking about the entire universe of assets they won't be buying in the future. Especially as it is quite a low turnover portfolio and a closed-end fund.Their largest PE investment is Northvolt - have a look at that company as an example of what they own. It is a large cap company and they bought in at a later fundraising stage. You are right that they are a bit constrained on future investments but that's the nature of any limit.

[jonwig] 03/4/2023 20:13

I won't be buying this.

They are so close to their unquoted ceiling that they can't take part in funding rounds for early stage companies. Hence dilution or worse. Also a recession can turn off the taps for fundraisings and even the best companies could face a down roundd which is unpleasant for valuations.

[topvest] 03/4/2023 19:57

Scottish Mortgage are surely going to be in big trouble if there is a US recession in H2 given valuations and high gearing levels. Most investment trusts with illiquid holdings don't have the level of leverage that Scottish Mortage has. If another bull market has started already then they will probably do reasonably well. It will be interesting to see how this will pan out that's for sure!

[quepassa] 31/3/2023 15:39

A lot of professional investors buy ScoMo as a way of gaining exposure to SpacEx as well as some of the other gems in ScoMo's portfolio of unlisted investments

[elbrus55] 30/3/2023 17:06

Thanks. I hadn't looked that far back.Anybody can buy Moderna, Asml, Tesla etc directly. The only reason I can think of buying this trust, rather than buying the underlying shares directly is their ability to profit from own share purchases like this. They can buy £10 notes for £8! It should outweigh the 0.3%pa AMC and 0.5% stamp duty.(I bought a small amount at 642p +stamp duty a couple of days ago.)

[quepassa] 30/3/2023 17:04

Believe it or not, the Tech Market / NASDAQ 100 has just entered A TECHNICAL BULL MARKET, having rallied 20% since December.

The second-best Quarterly performance for a whole decade.


Many reports on the web about this. Here's a non-paywall link:-

hXXps://markets.businessinsider.com/news/stocks/nasdaq-bull-market-tech-stocks-fed-policy-svb-bank-crisis-2023-3




ALL IMO. DYOR.
QP

[lord loads of lolly] 30/3/2023 12:09

Agreed, though they've been doing a fair bit of this already. Since the beginning of 2023, those RNSs have popped up on 9 Jan, 24 Jan, 30 Jan, 31 Jan, 1 Feb, 6 Feb, 7 Feb, 15 Feb, 17 Feb, 24 Feb, 28 Feb & 23 Mar. And latterly often for more than the £7m figure you quote.

[elbrus55] 30/3/2023 05:50

Yes, but if you can do the same every week for the rest of the year it would start to gradually move the dial both by helping NAV growth and reducing the share price discount.I doubt there is enough liquidity to do this efficiently in much larger amounts or more rapidly.Note if they start doing this then you will see the transaction in own shares RNS's popping up from time to time.

[lord loads of lolly] 29/3/2023 23:12

elbrus55 - think it would take a LOT more than £7m to move the dial significantly though.

[aishah] 29/3/2023 17:59

When there's blood on the streets...

[essentialinvestor] 29/3/2023 17:42

II, thanks for the post, interesting.

[elbrus55] 29/3/2023 17:19

The ROI% of buying their own shares is pretty high. Sell £2m of the private placements if you can find a buyer at something close to your valuation. Sell £5m of listed equity. Buy £7m of your own equity at a 20% discount. Repeat. It is such an easy way to increase your NAV per share which is presumably what the managers are incentivised upon?You wouldn't want to preannouce such plans.

[income investor] 29/3/2023 16:21

Did anyone else watch the webinar today? Seemed to be very much carry on as normal from the two managers. Claimed discounts generally had widened when tasked about SMT's discount- ignored the fact that other global equity trusts had much smaller discounts. Also claimed valuations of unquoteds were robust. I asked if they could make some small sales of unquoteds to validate the valuations - but of course my question was not picked! Apparently the board are going to make a statement in April - presume they will have some new appointments to announce then!

[stevenlondon3] 29/3/2023 08:57

I received a message from investor relations. "There is actually a webinar today where Tom Slater and Lawrence Burns will speak – if you haven’t registered for it yet, then you can at - Scottish Mortgage Investor Webinar."
1PM this afternoon.

[essentialinvestor] 28/3/2023 21:33

Cat, arja has been posting for well over 20 years on ADVFN, he gives TA views. Like most of us I'm sure he's made plenty of not so great calls.

[caternia] 28/3/2023 19:55

Love all these negative comments. Reminds me of people who never lost money on shares . Let’s be honest they sit on the side lines and make smart comments - but never bought a share in their lives. If someone says they have never made a loss on shares - they don’t invest. Hold on- we will be fine when it turns. History tells us that.

[arja] 28/3/2023 16:05

the chart is screaming out to short this stock as more downside to come and nasdaq index looking bad as bond yields rise in last few days . BUT the large discount to NAV makes me hesitate even though the NAV quoted MAY be way off the mark because of the Unquoted investments

[quepassa] 27/3/2023 14:39

Shareholder webinar this Wednesday 29th at 13.00hrs.

Slater/Burns. registration required. questions in advance. Q&A format

"Open lines of communication with shareholders is essential, particularly in the current environment.The purpose of this webinar is to answer the questions on your mind."


all imo. dyor.
qp

[lord loads of lolly] 27/3/2023 09:48

You can access the full FT article without a paywall here:

[essentialinvestor] 27/3/2023 08:27

You beat me to it!.

[jonwig] 27/3/2023 07:16

FT just now;

Hedge funds have closed bets against Baillie Gifford’s Scottish Mortgage Investment Trust after a large fall in its share price, despite concerns over board governance and exposure to risky private companies.

[steeplejack] 26/3/2023 10:49

Article today in money section of Sunday Times.Discusses SMTs past,recent boardroom rumpus,the more testing times ahead and asks whether its time to sell.Conclusion appears to be that its better to hold tight.Thereagain,given that the shares have more than halved in 18 months,thats hardly surprising.

[harry_david] 25/3/2023 14:13

It is worth doing the basic calculations. If management should have written the unlisteds down by another 20% the impact on the NAV would be a reduction of 6%. As the current discount is near 20% the continuing discount would still be a hefty 14%. They are good value at such a large discount which will reduce to near zero in time.