AVI Global Trust (AGT) has had a strong run of performance since last November. Its manager, Asset Value Investors (AVI) has been realising substantial profits from a number of positions where the discounts that these companies have traded at in the market, relative to their underlying net asset values, have narrowed significantly or have been eliminated altogether. As we describe on page 9onwards, the proceeds of these salesare being recycled into a more focused, high conviction portfolio of good quality companies trading at meaningful discounts to AVI’s estimate of their true asset value. Recent nervousness about new COVID variants has triggered a switch back into growth-focused strategies and AGT has given up some of its outperformance and seen its discount widen in recent weeks. AVI thinks that this is likely to be a short-term phenomenon. If so, this could be an attractive entry point for anyone considering an investment in AGT.
05 Aug 2021
Focused high conviction portfolio
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Focused high conviction portfolio
AVI Global Trust PLC GBP (AGT:LON) | 228 8 1.6% | Mkt Cap: 1,022m
- Published:
05 Aug 2021 -
Author:
James Carthew | Matthew Read | Jayna Rana - Pages:
AVI Global Trust (AGT) has had a strong run of performance since last November. Its manager, Asset Value Investors (AVI) has been realising substantial profits from a number of positions where the discounts that these companies have traded at in the market, relative to their underlying net asset values, have narrowed significantly or have been eliminated altogether. As we describe on page 9onwards, the proceeds of these salesare being recycled into a more focused, high conviction portfolio of good quality companies trading at meaningful discounts to AVI’s estimate of their true asset value. Recent nervousness about new COVID variants has triggered a switch back into growth-focused strategies and AGT has given up some of its outperformance and seen its discount widen in recent weeks. AVI thinks that this is likely to be a short-term phenomenon. If so, this could be an attractive entry point for anyone considering an investment in AGT.