Chrysalis Investments – Putting growing pains behind it

The last 18 months have been a challenge for Chrysalis Investments (CHRY). However, under the hood, it appears that majority of the portfolio assets have actually performed reasonably well given the circumstances, especially when you consider that one company, Klarna, contributed more than half of CHRY’s total NAV adjustment during FY2022. Its other private investments, which make up the majority of the portfolio, fell by 5.6% during the same period.

Despite the recent weakness, the adviser believes that the long-term prospects for the fund remain unchanged, with the company investing in a range of what it believes to be disruptive assets that continue to benefit from the rapidly accelerating digital transition. It suggests that the performance of these companies relies on their ability to disrupt their respective industries over years, not months and while short-term fluctuations in macro conditions can create challenges, including the ability to finance growth, the execution that it observes across the majority of the portfolio over the past 12 months leaves it optimistic.