After a strong period of performance in 2017, when Strategic Equity Capital (SEC) beat a strong small cap index by 6%, 2018 has proved problematic. Short-term performance has been impacted by stock specific price weakness within SEC’s concentrated portfolio (see pages 5-6). SEC’s managers are long-term investors, however. They have confidence in their portfolio, based on 3-to-5- year investment theses, and bought shares in the trust throughout Q2 2018, now owning around 4% of it. SEC’s discount is towards the bottom end of its trading range; and the managers believe that this could represent an opportunity. The board has authorised share repurchases to stabilise the discount.
07 Aug 2018
Confident, despite short-term setback
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Confident, despite short-term setback
Strategic Equity Capital plc (SEC:LON) | 0 0 0.0% | Mkt Cap: 153.8m
- Published:
07 Aug 2018 -
Author:
Ed Marten -
Pages:
11
After a strong period of performance in 2017, when Strategic Equity Capital (SEC) beat a strong small cap index by 6%, 2018 has proved problematic. Short-term performance has been impacted by stock specific price weakness within SEC’s concentrated portfolio (see pages 5-6). SEC’s managers are long-term investors, however. They have confidence in their portfolio, based on 3-to-5- year investment theses, and bought shares in the trust throughout Q2 2018, now owning around 4% of it. SEC’s discount is towards the bottom end of its trading range; and the managers believe that this could represent an opportunity. The board has authorised share repurchases to stabilise the discount.