I’ve flogged my holding in HVPE and chucked the proceeds in HGT. Here’s hoping it works out! 
1 Like
How’s it going? I don’t follow HVPE
But over 1 month HGT is just winning.
1 Like
So far, so good. I have an average price in the £3.60s which I’m happy with.
I like HVPE as a fund of funds but its discount is stubbornly high even during good times.
1 Like
Good price
Now HGT is moving and about time. My smallest and medium sized holdings are both close to 20%.
While my largest is up 30%.
HGCAPITAL TRUST - 2023 PRELIMINARY TRADING UPDATE
05 February 2024
HgCAPITAL TRUST PLC
PRELIMINARY TRADING UPDATE FOR THE YEAR ENDED 31 DECEMBER 2023
RESILIENT ESTIMATED NAV PERFORMANCE IN A CHALLENGING MACRO ENVIRONMENT DRIVEN BY STRONG TRADING IN THE UNDERLYING PORTFOLIO
London, 5 February 2024: HgCapital Trust plc (‘HgT’) today announces a preliminary trading update for the 12 months ended 31 December 2023.
HgT provides investors with a listed vehicle to invest in unquoted businesses managed by Hg, Europe’s largest investor in software & services companies.
The objective of HgT is to provide shareholders with consistent long?term returns in excess of the FTSE All?Share Index by investing predominantly in unquoted businesses where value can be created through strategic and operational change.
Highlights for 2023 include:
· Estimated Net Asset Value (‘NAV’) per share of 498.6 pence (unaudited)
· Total estimated NAV return per share, on a total return basis, of 10.7%1
· Total share price return of 26.2%1
· Discount narrowed from 23% to 13%
· Top 20 (77% of the portfolio) LTM revenue and EBITDA growth of 25% and 28% respectively for the year ended 31 December 2023
· Investments of £71 million and realisations of £343 million
· Year-end available liquid resources of £625 million (including a £350 million undrawn credit facility)
· Year-end outstanding commitments to Hg funds of £1.0 billion
NAV growth
HgT’s unaudited estimated NAV as at 31 December 2023 was £2.3 billion, which represents an estimated NAV per share of 498.6 pence, based on portfolio company valuations at 31 December and reviewed by the HgT AVRC. This growth was predominantly driven by strong trading performance in the underlying portfolio.
Investments and realisations
· HgT’s share of deployment from new and follow-on investments made during 2023 was £71 million, including GTreasury, Nomadia, JTL, P&I and Howden
· HgT’s share of proceeds from exits and refinancings during the period was £343 million, including secondary sales from Hg Genesis 8 and Hg Saturn 3, as well as the full exits of Transporeon and Commify. Full and partial exits represented an average uplift of 25% to their carrying values at 31 December 2022
Post- period balance sheet adjustments
Allowing for all transactions announced and not completed at the end of 2023:
· Available liquid resources of £735 million (including a £350 million undrawn credit facility)
· Outstanding commitments of £808 million
Hg REALISATION ACTIVITY CONTINUES TO HIGHLIGHT THE FUNDAMENTAL STRENGTH OF THE UNDERLYING PORTFOLIO
The sale of Argus announced in January 2024 represented the fourth material realisation event announced by Hg over the prior four weeks, resulting in c. $3.5 billion of proceeds that will be returned to Hg clients, including c. £295 million to HgT, once these transactions close in 2024.
This realisation represents Hg’s 13th liquidity event since the start of 2023 and the 29th liquidity event completed over the last two years, the equivalent of more than one per month and representing proceeds from nearly half of the Hg portfolio over this period.
This realisation activity sets Hg apart in a year when many other private equity firms struggled to generate liquidity from their portfolios. Hg believes its realisation activity in 2023 was a clear differentiator for HgT, highlighting the fundamental strengths and attractiveness of the underlying portfolio to both trade and financial buyers.
HgT will report its full year audited results for 2023 on 11 March 2024"
Note
“Year-end outstanding commitments to Hg funds of £1.0 billion”
Unusually for the sector this investment trust is not actually committed to the above £1 billion investment. It’s more of an option allowing the trust to invest alongside HG (the management company) when it suits. A definite advantage.
Looking good! Decent increase on exdivided day, unusual although dividend is quite small.
Just relooked at the discount really is narrowing.
From HL
|Premium/Discount:|-9.66%|
|12m average Premium/Discount:|-18.74%|
I will be selling a large holding in my general account moving the money into isa and buying back.
Not sure i will use all the money to buy HGT.
Difficult to decide when to sell with it being on a bit of a run at the moment.
1 Like
Yeah, I’m really pleased with this one. I dumped my HVPE position to double my holding in HGT in early December. So far, so good – the discount has come in far more than HVPE’s.
It’s a long-term hold for me.
1 Like
Just got this Edison on HGT not read it
1 Like
Good write-up that, saves me going through the update. HGT ticks a few boxes for me: smaller cos, private equity and tech.
This, SMT and ATT are starting to pay off big time. I’m up 25-35% on all three over six months in share-price terms and rates haven’t even started to fall yet.
I have gone big on REITs and renewable infrastructure.
All should show big gains when interest rates turn. I am hoping/expecting 30% gain by this time next year.
Roughly average dividends are 8% probably more.
So being paid to wait.
NBPE and ICGT done nothing yet although NBPE pays a 5% dividend.
As you know 3i is a bat out of hell!
HGT chasing it!
I have gone big on REITs and renewable infrastructure.
All should show big gains when interest rates turn. I am hoping/expecting 30% gain by this time next year.
Roughly average dividends are 8% probably nearer 9%
So being paid to wait.
NBPE and ICGT done nothing yet although NBPE pays a 5% dividend.
As you know 3i is a bat out of hell!
HGT chasing it!
@rehpot
Not sure if you are aware but not all of HGT dividends are normal income dividends. Some are classed as interest payments.
Which should be covered by the £1,000 interest allowance
1 Like
Thanks, I didn’t know that though I’m sure I must’ve read it in annual/interim reports at some stage. I think one or two other trusts I own do likewise but I couldn’t tell you which ones.
I don’t pay much attention to whether income from securities is actually a dividend or interest as everything’s in an Isa or Sipp, so it doesn’t make much difference to me.
More generally, I try not to monitor my investments too closely. I read annual reports and scan news from the likes of QuotedData, but I do little else.
I don’t even track performance closely other than checking in app that I’m beating VWRL once in a while.
I figure that because I have a long time horizon (fingers crossed!), it’s best not to focus too much on shorter-term noise.
Edit: I’ve just realised this entire thread is just me and @Beenthere going back and for. Hopefully, it’s a case of great minds rather than fools seldom differ! 
As an aside, it’s a shame quality trusts like HGT don’t get much love. I’d bet my house on it obliterating a FTSE 100 tracker performance-wise.
2 Likes
Another from eddison
1 Like
Received a HGT dividend today in my general account but not in my SIPP??
Anyone received it in there SIPP??
I think mine’s arrived. I haven’t had a notification so can’t be sure but it’s for roughly the right amount.
I sold HGT and all my other trusts in the past week or so in favour of going 100% passive.
1 Like
HGT has taken a particularly big hit 6% Friday 7% today.
ALL OF PE IS DOWN.
But HGT seems the worse with less of reason to do so. I am comparing it with 3i in particular ,which is down much less despite being on a very big premium.
Well sold some 3i to buy HGT as 3i had recovered back to Fridays finish but HGT was down 7%.
Unreal order rejected 11 times only went through when share price recovered a bit.
Very annoying.