Is anyone following this story? Should happen somewhere in Q2 2023. I’m thinking about buying MRO.L some time before spin-off and try to get some value. Not really that familiar with those companies and how to correctly play the event so wanted to know the opinions.
@Lonelynx i don’t know much about it but hopefully there others that do.
However my philosophy which could be wrong (no advice) is that at the time a news is released, all the value has been realised any buying i do afterwards is just risks.
Anyone one any of these / would you recommend?
I think Shoe Zone is worth looking into. (I don’t hold it.)
It’s worth considering UK small-cap trusts. There’s a fair few decent options out there such as OIG, THRG, RIII, SEC, BRSC, RKW and JMI which you can pick up at a discount.
This is possibly the only one I would go for. The rest consistently have high discounts and not so great track records compared to THRG. That said it has a high performance fee for its track record.
I bought some THRG a few months back and it’s had a nice 20% bounce. It’s not for the feint hearted though as it has high gearing and can go short.
I also like Oryx, the only trust to better THRG, but I hold another fund from the same manager.
While relatively expensive, they have all comfortably outperformed a comparable UK small-cap index over the long-term.
UK shares being about 4% of the Global stock market, are we not better off with owning iShares MSCI UK Small Cap UCITS ETF than the various trusts being mentioned here.
It cant get more riskier than small caps…unless crypto
It is risky but I’m investing for the long-term so I’ve tilted my portfolio towards small caps.
I prefer an active approach for small caps due to market inefficiencies which should make it easier for managers to outperform. Over the long run, gearing will amplify gains too.
For example, the index has returned about 80% in 10 years versus 150-300% for the trusts above. More than a dozen have outperformed, with only a handful beaten by a tracker in that time.
#AWE.L alphawave semi
#PSH.L Pershing Square Holdings
JD’s done well since I bought into the £1 range.
I like a few Mid Caps in the UK but feel the recent Bull run is not justified given the Political and Economical landscape.
Would be interesting if there is a Small UK ETF as someone here mentioned. (Just had a look and it has B&M as well as DS Smith in it, FTSE 100 companies).
Nearest thing you’ll get to a small UK ETF I think is PRUK, Amundi Prime UK mid and small cap UCITS ETF. It includes mid caps. I haven’t found any ETF for companies smaller than this.