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What's left of 2020's lockdown fund gains?

Discussions about the fate of “lockdown winners” are starting to feel a little dated now that concerns about the momentum of names like Zoom Video Communications (US:ZM) have morphed into something much broader. With inflation soaring and central banks cranking out higher interest rates, it seems we worry less about whether tech names borrowed growth from the future in lockdown and more about how much intrinsic value there now is in the classic growth stocks. Accordingly, a follow-on question is whether investors should reposition their portfolios.

People have all manner of different answers to such questions, but a little context can be instructive. It’s worth assessing how some of the funds viewed as lockdown winners have fared over the course of the pandemic so far – and whether the volatility of the past half year or so has managed to erase those previous gains.

Many leaders of 2020 would likely position themselves as champions of innovation – think Baillie Gifford portfolios such Pacific Horizon Investment Trust (PHI), Scottish Mortgage Investment Trust (SMT) and Edinburgh Worldwide Investment Trust (EWI), alongside similar open-ended funds. Think also Allianz Technology Trust (ATT)Biotech Growth Trust (BIOG) and Invesco CoinShares Global Blockchain UCITS ETF (BCHS). Separately some China and gold funds made big 2020 returns, as did other names such as JPMorgan Japanese Investment Trust (JFJ).

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