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IT Insider: the winning trusts of 2011- and some ideas for 2012
by James Carthew on Jan 16, 2012 at 00:01
2011 was a year that many are glad to put behind them. Returns from most asset classes were poor, with negative real returns from equities in almost every country.
The US market came out on top, with the UK not far behind. Emerging markets fared badly as worries grew about the sustainability of Chinese growth. Generally, small cap stocks underperformed.
Thanks to market manipulation by central banks, bonds were the asset class to be in as US, UK and German government bond markets generated double digit returns. The gold price was volatile but up over the year.
About a quarter of the investment company market delivered positive performance (in price terms) over the year.
Greenwich Loan Income (in which I have an interest as a shareholder and a director) was the third best performer as we successfully concluded the takeover of Asset Management Investment Company and announced a substantial reduction in the management fee.
In fifth position came Henderson Private Equity . Its realisation strategy (adopted in 2010) began to bear fruit over 2011 and this enabled it to conduct a tender at the end of the year. In sixth place, Northern Investors took the decision to shift to a realisation strategy in the summer and held its first tender in the autumn.
Also worthy of a mention is Marwyn Value Investors (another one in my portfolio). Its shares were boosted in April with news of an offer for the whole company from Marwyn Management Partners.
This fell by the wayside but in September its largest investment, Entertainment One (the media rights company whose portfolio includes Peppa Pig and the Twilight Saga) announced it had had approaches.
While there can be no guarantee that this will come to anything, it is worth noting that Marwyn Value still sits on a 30% discount.
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- Matrix European Real Estate (Ordinary Share)
- Henderson Private Equity (Ordinary Share)
- Marwyn Value Investors (Ordinary Share)
- Baker Steel Resources (Ordinary Share)
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