- UK and Asia focussed trusts are major themes
- Special situations, activist favourites and international income plays
- Our first three Alpha reports are showing significant outperformance of MSCI World and FTSE All Share Indices
- Cumulative total returns from the strategy over 15 years stands at 717 per cent versus 399 per cent from the MSCI World
During the last week the market witnessed a spectacular switch in fortunes between growth stocks, which have massively outperformed over the last decade, and value stocks. This has left many investors wondering whether value’s short but sharp ascent will continue or whether growth will surge back. On the whole, this month’s Alpha investment trust report seems to be betting on value continuing to prosper with a significant focus on UK trusts.
The UK focus doubles-down on the bet laid by last month’s report. October’s value-focused UK picks - such as Aurora (ARR) and BMO Commercial Property (BCPT) - have already produced some spectacular returns. The possibility of a market-pleasing Brexit outcome and further vaccine developments provide grounds to hope there could be more to come, although it is by no means a given.