Just a couple of months ago, Strategic Equity Capital (SEC)’s net asset value (NAV) and share price were at all-time highs. However, since then, the covid-19-related sell-off in markets has led to a flight to safety. NAVs of smaller companies funds have fallen and discounts have widened. Against this backdrop, SEC has proved relatively resilient, however…. Read more
Jeff Harris and Adam Khanbhai, SEC’s managers, were confident in their portfolio ahead of the outbreak. The long-term economic effect of the measures being taken to stem the spread of the virus is hard to predict, and the effect on individual companies will vary greatly. However, we believe that SEC’s managers will see current market weakness as an opportunity to add to positions in companies that they know and like at attractive valuations. The private equity industry may also see a chance. A takeover bid for one of SEC’s holdings at the start of March might be the first of many.
The managers and the management contract are on the move. Jeff and Adam will boost the strategic public equity team at Gresham House and the AIFM will eventually be Aberdeen Standard Gresham House Investment Management Limited. Significantly increasing the resources available to support SEC.
Focused UK small companies portfolio
SEC aims to achieve absolute returns over a medium-term period, principally through capital growth. SEC is managed with a focused portfolio of investments selected on the same basis that a private equity investor would use to appraise its investments.
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