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magazineScottish Mortgage is back on top
Scottish Mortgage (SMT) 548p
Gain to date: 13.9%
Original entry price: Buy at 481.4p on 18 October 2018
Shares in technology-focused investment trust Scottish Mortgage (SMT) recently hit a nine-month high as it continues to reward our buy call in the wake of a big sell-off last autumn.
The usual premium to net asset value (NAV) status enjoyed by the fund has been restored as investors continue to back the stock picking skills of long-serving manager James Anderson.
This remains a highly concentrated portfolio with around 45 holdings and is focused on capital gains rather than income with a modest dividend yield of 0.6%.
A significant factor in the strong recent performance has been the recovery in US stocks, with the US accounting for more than half the portfolio. In particular, a share price recovery in electric car manufacturer Tesla has helped Scottish Mortgage given it represents 3.7% of the trust’s portfolio.
Tesla, which had been a target for short sellers, has rebounded thanks to higher-than-expected delivery numbers in the second quarter.
SHARES SAYS: Dampened hopes on rate cuts have seen US shares stall but Scottish Mortgage has a long-term investment horizon and continues to be a good buy for an investor operating on a similar time frame.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
