Investment Trust Evaluations

Has anyone thought of taking a snap of their holdings, and valuing the underlying stocks more frequently than their NAV has been calculated?

The idea being to monitor the average premium/discount more closely, and use that as an indicator of when to buy and sell.

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Interesting question. I can’t think of any major pitfalls with such a plan: perhaps others can?

I kind of do it already but in a totally unscientific way by eye.

I have a watchlist full of the underlying holdings of a few ITs and I do think it gives me more of a Spidey-sense for premiums/discounts as well as price movements.

That said, my strategy’s pretty rudimentary–when it’s a bloodbath on Webull, I go shopping!

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I’m not sure that’s smart to try and time the market like that, depending on the frequency you’re talking?

Trusts also at times aren’t so liquid, therefore you may lose out on the spread at times?

It’d be a good monitoring tool though!

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Good point, spread and stamp duty would be stumbling blocks. As you say, potentially a useful indicator though if you’re not trading or trying to time the market too much.

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You can account for spread to a point. Stamp not so much.