The directors of the BlackRock Hedge Selector investment trust are considering overhauling its approach.
The £34 million closed-ended fund, managed by Richard Plackett (pictured) and Ralph Cox, invests in UK equities with a long/short strategy. It has returned 7.4% on a net asset value basis over the past three years, and currently trades on a 4.1% discount compared with a 12-month average of 0.3%.
‘Given the current market capitalisation of the company and prevailing share price discount, the board of BlackRock Hedge Selector announce that they will be undertaking a shareholder consultation in relation to the current investment objective and policy of the company’s existing share class,’ the directors stated.
Monica Tepes, an analyst at Cantor Fitzgerald, has highlighted BlackRock Hedge Selector as ‘possibly the most under-appreciated investment company’ thanks to its low volatility, low correlation, and low drawdowns relative to the FTSE.