The recent results update from the £155m Odyssean Investment trust revealed some interesting views on the prospects for UK smaller companies.
A lot has happened to the £1.2bn Edinburgh Investment Trust in the last few years, but it looks like those changes are starting to pay off.
It has been a difficult period for investors in small cap biotech stocks, which have suffered a huge write down in the last year or so as these long duration assets have been adversely affected by the sharp increase in discount rates.
It has been another tough period for Scottish Mortgage, with the trust reporting a 15% loss in the six months ended September compared to a seven percent decline in the FTSE All World index.
Conventional bonds have been virtually untouchable for years − at one stage there were literally trillions of dollars of government debt with a negative yield − but that has all changed now with the sell-off due to rising interest rates making them worth a closer look.
Halloween may have been this Monday, but the real horror show for tech investors was last week when the former darlings of the stock market took an absolute hammering.
Although things have since calmed down since the mini-Budget, there is no doubt that the days of ‘free money’ are over.
The Real Estate Investment Trust sector has experienced a dramatic sell-off during the last month or so due to the sharp increase in gilt yields.
It has been a tough year for many investors with the markets struggling to cope with the transition to a new regime of higher inflation and lower growth.
The fallout from the mini-budget continues to ripple through the markets with the spike in the gilt yield sending discount rates sharply higher.
