Laura Foll, Co-Fund Manager for Henderson Opportunities Trust, discusses the Trusts recent performance and portfolio activity, highlighting the stock specific drivers behind the Trust outperforming its benchmark in the final quarter of 2020. Laura also explains why she is positive on the UK market and why recent M&A activity demonstrates that there is value to be found in the UK. Furthermore, Laura explains how the Trust moves “deliberately differently” to the broader UK equity market and why this Trust is perfect for those looking to diversify.
The Alternative Investment Market (AIM): a sub-market of that is designed to help smaller companies access capital from the public market. AIM allows these companies to raise capital by listing on a public exchange with much greater regulatory flexibility compared to the main market.
Diversification: risk management strategy that mixes a wide variety of investments within a portfolio
Hurdle rate: the minimum rate of return on a project or investment required by a manager or investor
Mergers and acquisitions (M&A): the process of one company combining with one another. In an acquisition, one company purchases the other outright. A merger is the combination of two firms
Valuation discount: the deficiency in value that a buyer estimates for a company compared to its peers in the same industry
Yield: the earnings generated and realized on an investment over a particular period of time.