Merian Chrysalis Investment Trust Ltd - CHRY

This investment trust invests in equity and equity-like securities in private companies.

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Annual results September 2020



Looks like it’s joining the FTSE 250!


wish I had paid attention to this trust earlier. great portfolio.

Highly concentrated mind you, that’s something you have to keep in mind. However they have some interesting companies that I think are and will do well.

It is, and probably the reason I like it.

Access to private companies like Wise and Starling.

They have announced intentions to raise new funding today. As part of that they’re using primarybid to offer retail investors access to the offering

Don’t normally put money to things like this does it look like a good stock

Personally im a fan of some investment trusts for some of the flexibility they have in being able to more easily access private equity.

With this one I think you need to know what their invested in to make a decision. They’re highly concentrated on finance and basically hold only private companies, and only a small number of them.

Heres their holdings as of October


they also apply a performance fee (not all trusts do)


This has had a torrid time recently. Have we reached the bottom yet? The shares are down about 75% in one year …

Up 29%so far this month
Still on a big discount ie 61%

If you look at the graph for 5 years you can see the NAV and share price falling.
Last quarterly NAV update was 22nd of August.
So next should be 22nd of November.
Should be interesting to see if NAV continues to fall.

Article from Quotedata

To read the full article you need the app.
The shortened version might be adequate.

They have plenty of cash to do buybacks but want to keep it to make sure they can support the growth companies they have shares in.
Discount not going to disappear any time soon?

22nd August Nav fell by 22.8%
21st November NAV down 9.6%
Both are about 1 month out of date when announced. Unlike previous NAV these were done
independently. Previously they were done internally.

Minimal movement in share price. Hence the discount will be around 57.5%. From the stated 61.7%.
So the market expected this fall in NAV it was in the price.

They use multiple methods/inputs when they value these companies but a very rough measure is comparing them to listed companies and knocking of 20% because they are unlisted.

No chance of taking any of these companies to market in the present market condition.
They claim they have plenty of cash for the companies who still need money to expand.
The valuation are quarterly.

See announcements on the right. Long winded trading updates included.

I will be keeping an eye on the market specifically growth companies. If growth starts to recover i may invest. A small amount only. If the next NAV is positive there maybe a significant move upwards in the share price. That assumes the market isn’t already pricing it in.

Share price Keeps on creeping up but today up 8% so far today no news that i can find. Discount based on yesterday end of trade is 58% (Hargreaves Lansdown).
Again last quarterly NAV down 9.6%.
Nothing to back up the rise in growth investment trusts. Only checked Scottish mortgage down 1% and Smithson down 1%.