Currently 21% down but hoping for a not so long Recovery
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They are currently working on a number of different vaccines and treatments for various things. Assuming they are successful they could do quite well (especially the non vaccine treatments)
mRNA medicines we are currently developing?
I don’t pretend to know if they will succeed or not though
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March portfolio changes for those interested:
- +2M shares in Gingko Bioworks to Total 90M (they added 10M in Jan).
- They sold 285K shares in JD.com to leave 645K even though it was a completely new position in January
- Invested ~£75M in Blockchain.com Series D. Valuation doubled from Series C. They were one of only 2 Investors in this round.
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Good job you don’t hold EWI as well then!
I’ve been adding a bit, to average down.
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Interesting change of direction on China in May.
Full exits in Beke, Full Truck Alliance, JD.
Reduction in Alibaba c. £100M
Not so good timing in the short term given China was the best sector in June
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An aside i know.
6.5% Scottish mortgage investments are in Tesla. SMT is on 11% discount. Hence you are paying 89p for every 100p worth of Tesla.
Okay thats not a 100% investment in Tesla its an investment in growth companies.
I personally am by no means certain that growth has bottomed out but worth a thought, SMT that is.
Important points to note
SMT has 14% gearing so if growth starts to recover you will gain more. If it continues to fall you loose more.
It normally trades on a premium averaging around 3%. I always look at the discount/premium over time. I have been looking at investment trusts on 40% discounts. A check shows they are normally on 20% discount so in reality a 40% discount is only a 20% discount.
That works both ways i would consider SMT to be on 14% discount not a 11% one.
Just my way of thinking.
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They still have 13% of assets in China. That’s exactly 13% to much for me!
In September they further reduced holdings in Alibaba and Tencent
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Not sure about this
Pantheon in the private equity investment trusts was the example i had in mind.
Presently on a 49% discount (average tor the year 21% discount. See below. As you can from the graphs (one graph looks very odd) over 5 years its got no where near par. If you are on tablet turn it sideways for 10 year figures.
https://www.hl.co.uk/shares/shares-search-results/p/pantheon-international-plc-ord-gbp0.067
So if you buy it in the hope of going to par then your living in a dream world.
On the otherhand 3i group is on 14% discount BUT it normally trades on 20% plus premium. In fact all the way upto a 45% premium. So i would count that as 34% plus discount.
So the 10% discount on SMT could be considered, a say 12% discount. If or when growth comes back I expect NAV gain with the share price rising further than NAV.
You may not agree with my methodology but i am sticking with it!
I think i read somewhere that one of the pharmaceutical companies are going to have ago at bubonic plague.
Okay no benefit to us in the west but Madagascar, the so called democratic Republic of the congo and Peru would certainly buy into it.
The US government is paying for companies to work on rare disease, ones that would normally not be worth the pharmaceutical companies researching.
I’ve got £30k in SMT - at the current valuation. Not touching it for 5 years at least.
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12.5% discount to NAV is tempting me now.
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RNS half year results
Discount narrowing to 9%.
SMT share price is rising faster than underlying assets.
Although you should remember that discounts are based on the end of trade the previous day for listed assets. Not the unlisted.
Has the market turned for growth/high growth?
I can say with certainly…that i have no idea.
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So I wasn’t adding to my holding of MYI because I’ve been adding to SMT, albeit cautiously!
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