A differentiated exposure to smaller companies
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Edison Investment Research Limited
London, UK, 15 Mai 2024
Edison issues review on Henderson Opportunities Trust (HOT): A differentiated exposure to smaller companies With a focus on long-term growth, Henderson Opportunities Trust (HOT) seeks investment opportunities across the breadth of the UK market. This includes a strong bias towards smaller and earlier-stage companies with significant potential to become tomorrow’s leading British businesses. There are tentative signs that the significant three-year underperformance of these smaller companies, and of HOT, may be coming to an end. If so, the trust is well placed to benefit and its differentiated, truly all-market approach is one that many investors would struggle to replicate. Moreover, HOT’s size and permanent capital base means that it can act nimbly in less liquid parts of the market and take a patient approach. The margin by which overseas-oriented, often defensive larger stocks outperformed SMEs narrowed in 2023 and since October 2023, the start of HOT’s FY24, sensing a turn in the interest rate cycle, the NSCIAEX has outperformed. So too has HOT, with an NAV total return of 18.6%, 4.3% ahead of its broad market benchmark and 2.4% ahead of the NSCIAEX. It is uncertain whether the recovery in SMEs will be sustained, but valuations are low and the managers argue that a tough economic outlook is more than priced into share prices. They note that a recovery towards historical norms of profits and valuations would be a potent cocktail for returns. Click here to view the full report. All reports published by Edison are available to download free of charge from its website About Edison: As a content-led investor-relations business, Edison helps companies stand out and meet the right shareholders. Edison’s integrated investor relations solution combines expert analyst content, digital targeting and active investor engagement. This drives liquidity and valuations by building bigger, better informed and more engaged investor audiences globally. Edison has a proven history of increasing liquidity and valuations for its clients. Edison’s content can be viewed by all investors, anywhere in the world. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Martyn King +44 (0)20 3077 5700 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ X www.twitter.com/Edison_Inv_Res YouTube http://www.youtube.com/edisonitv
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1903969 15-May-2024
