Scottish Mortgage Invest... Share Discussion Threads

[kikkeridirect] 10/3/2021 11:51

Any predictions for the afternoon ?

[captain stock] 09/3/2021 21:53

TSLA closed almost 20% up on the day. Tech funds should rally tomorrow.

[oldsid] 09/3/2021 21:36

Nasdaq up 3.69% at close all good .

[oldsid] 09/3/2021 21:33

Think your right , and a lot of positives being spoken about Tesla today so fingers crossed people.

[arja] 09/3/2021 21:28

might be famous last words norbie as nasdaq now only about 40 points ahead of what it was at 4.35pm afteer a late selloff in US indices .

[n0rbie] 09/3/2021 21:03

This will fly tomorrow!

[kikkeridirect] 09/3/2021 19:51

Even worse I sold at 980 yesterday ?

[brwo349] 09/3/2021 19:29

I didn't have the balls to buy this at 950p yesterday. Oh dear oh dear.

[brwo349] 09/3/2021 19:28

NIO up 16.5%!!

[brwo349] 09/3/2021 19:28

ASML up 7%

[brwo349] 09/3/2021 19:27

Amazon, Moderna, Delivery Hero all up 4.5%

[brwo349] 09/3/2021 19:25

illumina up 4.7%

[brwo349] 09/3/2021 19:18

tesla up 19%!

[dexter1612] 09/3/2021 18:35

May be some more volatility in the short term, but once markets get their head around a rise in US Bond Yields up to about 2.0% it will be business as usual.Given the almost non existent Bond Yield factor over the last 3 or years its no surprise.Demise was wildly overstated.

[arja] 09/3/2021 16:20

in spite of that it has recovered well along with ATT and PCT . Not yet certain
nasdaq has turned but looking promising .

[hartleyjr1] 09/3/2021 16:18

Well dome those that bought sub £10 yesterday!

[18bt] 09/3/2021 15:32

This from Citywire

Private equity fears caused Scottish Mortgage’s swings
By Gavin Lumsden 09 Mar, 2021 at 14:14
3 Comments
Private equity fears caused Scottish Mortgage’s swings

Concerns about the extensive unquoted holdings in Scottish Mortgage (SMT) at a time when quoted technology stocks are falling lay behind yesterday’s extreme volatility in the investment trust’s shares, says Numis Securities.

Scottish Mortgage shares dropped 6% on Monday morning, leaving them 31% below their 15 February peak of £14.15 when the tech rout began, before rallying yesterday afternoon to close 3.8% up at £10.56.

The rebound has continued today with shares in the global portfolio rising 2.7% or 29p to £10.85.

Numis, a joint broker to the now £14.6bn Baillie Gifford flagship trust, said investors were worried that valuations of its 50 unquoted companies, worth £3.1bn or 16% of the portfolio at the end of January, were not keeping up with events.

In a note this morning Numis sought to reassure investors worried by the three-week slide in the large, quoted tech stocks held by Scottish Mortgage in the US and China. Its analysts noted that Baillie Gifford, which cut the valuations of many of its unlisted positions in the coronavirus crash a year ago, was ‘relatively proactive’ in its valuation policy.

Although the broker said the sharp correction in tech stocks in response to rising bond yields and fear that interest rates could rise, had not triggered a revaluation of any of Scottish Mortgage’s unquoted companies, it said their value had remained broadly unchanged in January when markets rose, extending their end of 2020 rally before undergoing the latest severe correction.

This ‘provides some cushion to the valuations, although clearly further market falls have the potential to have an impact,’ Numis analysts said.

Numis also echoed a call from Stifel analysts for an update from Scottish Mortgage in light of the tech sell-off, adding: ‘We would welcome additional information about when significant valuation adjustments have been made, although we understand this may be difficult if there are multiple ongoing changes and there may be disclosure restrictions on individual investments.’

Scottish Mortgage fund managers James Anderson and Tom Slater assembled the large unquoted portfolio in order to tap into fast-growing technology disrupters before they float on public stock markets. Two years ago they revealed the strategy had been highly successful, generating a 419% total return over eight years as companies either prospered off-market or went on to make lucrative stock exchange debuts.

Although returns have been largely good, the unlisted component has left the trust open to the same concern as other private equity investment trusts that three-to-six monthly reporting cycles can leave valuations ’stale’ when economies or markets suddenly change direction.

Baillie Gifford seeks to avoid this by reviewing a third of its unquoted portfolios each month, as well as holding ‘ad-hoc’ reviews in response to significant events, ensuring all the illiquid and hard-to-trade positions are assessed every quarter.

The initial plunge on Monday saw Scottish Mortgage briefly hit a wide 17% discount below its net asset value (NAV) of 1,159.75p for Friday that had been released yesterday morning.

By Monday’s close this had narrowed to 6%, according to Numis, after the board authorised another big purchase of the trust’s shares, buying 1.5m shares at 1,055.49p. This follows the buyback of 1m shares last week and leaves the trust with 49.8m shares in treasury which it could re-issue if investor sentiment improves and the shares resume trade at a small premium above NAV.

By around 1pm today the discount had narrowed further to 3% below the latest NAV of 1120.41p for yesterday released at 12.42pm.

The shares have added 65p from their £10.20 level at Friday’s close when our weekly Trust Watch column suggested they were a ‘buy’. At £10.85 they stand 23% below their peak on 15 February but, having more than doubled last year, have notched up a total return of 70% over the last 12 months.

That leaves their 10-year total return at 695%, which looks impressive against the MSCI World ex-UK index gain of 203%, although it may have been achieved in a market and economic backdrop that was more favourable to its high growth style than current conditions.

[bdog51] 09/3/2021 15:01

NASDAQ up 3% so far, promising start. Are we seeing true recovery here, is it a temporary blip, or is it a case of wait and see? Some here were recently predicting a drop here as low as 800, 750 even. Hard to predict I think.

[kikkeridirect] 09/3/2021 14:58

Any predictions how high this can go based on Nasdaq ?

[arja] 09/3/2021 14:04

no, actually about 2% as NTA is 1120 but will be now a bit more after nasdaq rally today . share price will not hold the 1094 level if nasdaq comes off after 2,30 pm when physical opens IMO

[fidra] 09/3/2021 10:28

Interesting USA at around yesterday’s asset value .

SMT still around 10% less .

[arja] 09/3/2021 09:18

missed intra day rally again but too obsessed with VMUK at the moment ! well done to those who did and nasdaq creeping up.

[arja] 09/3/2021 07:38

nasdax still down about 1.5% from level at UK close but might not affect SMT much as it now trading at about a 10% discount but today's NTA announcement likely to show a small fall . A pity it is not published earlier in the day as a few insiders will
know it now I guess .

[craftyale] 09/3/2021 07:30

Don't ever go shopping mid day......by the time I'd come home I paid 1050! :)

[purplepelmets] 09/3/2021 06:41

Likewise. In for a fair whack at 992