EOT’s management are open (and conscious) about the fund’s relative investment performance. However, the team remains confident in the progress of their investees and their ability to weather the current global uncertainties. Reflecting the portfolio’s recent relative performance our expectation is that the fund’s 25% conditional tender offer will be triggered (3 years relative to 31 May 2026) and we also note the 2026 continuation resolution. Looking forwards, our view is that following the re-rating of sectors that EOT has low/no exposure to (diversified financials, defence etc) the fundamentals of their investees should translate into performance. In our opinion, potential near-term catalysts include the taming of inflation and, the associated, lower interest rates. Trading at a circa 6% discount (in line with its average), we view EOT as being fairly valued with the potential of discount narrowing from its likely 2026 tender offer and/or a return to form.
