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A disciplined approach to long-term investing
In this video, Neil Hermon, Portfolio Manager of the Henderson Smaller Companies Investment Trust, provides an update on the Trust highlighting the key drivers behind the consistent level of outperformance, areas where he is finding opportunities, and the factors currently driving market uncertainty.
27 Oct 2021
Key takeaways:
- The Henderson Smaller Companies Investment Trust has outperformed the benchmark in 16 of the last 18 years, driven by prudent stock selection and the teams disciplined approach to long-term investing.
- The increased number of initial public offerings (IPO’s) in the UK market has provided the team with attractive and exciting new investment opportunities.
- Higher inflation, the Covid-19 delta variant, supply chain disruptions, rising costs within raw materials, and labour shortages pose a risk to the market in the short to medium term.
- The Trust invests mainly in mid-to-small cap stocks; therefore, the increase in the Trust’s total assets to over £1bn has not impacted the team’s ability to find opportunities further down the cap scale.
Definitions
Inflation:The rate at which the prices of goods and services are rising in an economy. The CPI and RPI are two common measures. The opposite of deflation.
Initial public offerings (IPO):Initial public offering: when shares in a private company are offered to the public for the first time.
Related insights
27 Oct 2021
Key takeaways:
- The Henderson Smaller Companies Investment Trust has outperformed the benchmark in 16 of the last 18 years, driven by prudent stock selection and the teams disciplined approach to long-term investing.
- The increased number of initial public offerings (IPO’s) in the UK market has provided the team with attractive and exciting new investment opportunities.
- Higher inflation, the Covid-19 delta variant, supply chain disruptions, rising costs within raw materials, and labour shortages pose a risk to the market in the short to medium term.
- The Trust invests mainly in mid-to-small cap stocks; therefore, the increase in the Trust’s total assets to over £1bn has not impacted the team’s ability to find opportunities further down the cap scale.