Another few months have rolled on by since the (mid) March update on my Alternative Funds trading list. At that stage, the portfolio had increased by an average of 18.4% (not including dividends) against around 15% for the FTSE All-Share index. Here we are three months later and I estimate that the total returns from my list is 29.3%, this time including dividends paid. By comparison, the FTSE All-Share index has returned a total (inc dividends) of about 20%.
Stand out stars include Schroders European REIT – up 44% – India Capital Growth – up 45% – and my most recent addition Georgia Capital which has risen 33% in just a few months. I’d also like to give an honorable mention to ORS REIT which has finally started to motor ahead.
This time around I have also listed my target price at which point I’ll be tempted to close my position.
I do have one trade though – a SELL. It’s Tetragon Financial which has been the portfolio laggard with a gain of just 3%. It remains at a 60% plus discount and as I feared when I first wrote about the fund, it remains in the dog house. I’d hoped that as markets rallied, sentiment might just shift – but alas investors don’t seem interested. I’m not convinced I can see any catalyst on the horizon which will push the share forward so I am selling at £7 a share and booking that tiny uplift.
Looking to the next six months I think there is continued upside at Phoenix Spree which I think will breach £5 before the year is out. I’m also still very bullish about the Schroders European REIT which continues to trade at a near 20% discount. If the market stays bullish I’d also count on much bigger gains for RTW Ventures and India Capital Growth. Assuming those bullish conditions I have an end-year target of $2.50 for RTW (which I would bet will seek a full listing on the premium segment soonish) and £1.50 for ICG.
If I had to mark one share for future disposal, I suppose I might look at Doric Nimrod 2 which has had a great run-up. I have deliberately left out a target price because the outlook is so impossible to determine given the volatile international airline market. If the share price moved above 65p in the next quarter, I’d be tempted to take my profits.
|Name||Price||Purchase price||% total return||TIDM||Discount||Target price|
|Urban Exposure PLC||0.66||0.56||17.9||UEX||0.75|
|Schroder European Real Estate Investment Trust Ltd||1.0125||0.72||44.4||SERE||-19.30%||1.5|
|RTW Venture Fund Ltd $||1.94||1.52||27.6||RTW||4.80%||2.50|
|PRS REIT (The) PLC||1.062||0.75||45.6||PRSR||11.80%||1.5|
|Doric Nimrod Air Two Ltd||0.78||0.61||42.6||DNA2||-39%|
|India Capital Growth Fund Ltd||1.085||0.744||45.8||IGC||-10.30%||1.5|
|Phoenix Spree Deutschland Ltd||3.97||3.24||24.6||PSDL||-12.40%||5|
|Tetragon Financial Group Ltd||7.025||6.82||3.0||TFGS||-62%||SELL|
|Honeycomb Investment Trust PLC||9.475||7.65||31.7||HONY||-7.10%||10|
|Georgia Capital PLC||6.82||5.1||33.7||CGEO||-39%||10|
|Alt Credit Investments||10.9||Bought at 7.50 sold at 8.32 in Aug 20|