Henderson Opportunities Trust - Riding the next wave with stabilisers
Henderson Opportunities Trust (HOT) is unusual in that its unconstrained mandate means it can buy into very small companies and hold them no matter how large they get. Managers James Henderson and Laura Foll explain that the investment trust structure enables them to own micro-caps (sub-£50m), which can be very illiquid and therefore unsuitable for an open-ended fund. For example, AIM-listed Serica Energy (the top holding at c 3.6% of the portfolio) now has a market cap of c £900m but it was only c £48m when HOT first invested in late 2013. Meanwhile, the trust’s all-cap nature means that, unlike a dedicated smaller companies fund, it can also own mega-caps such as Shell (£172bn) and HSBC (£101bn). HOT has underperformed the broad UK stock market in recent months after a very strong FY21, but has a compelling longer-term track record, ranking first in the AIC UK All Companies sector over three, five and 10 years.Henderson Opportunities Trust is an investment trust company. Co. invests in a portfolio of 70 to 100 investments on an unconstrained basis across the whole range of market capitalisation. Co. has appointed Henderson Investment Funds Limited to act as its Alternative Investment Fund Manager.
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