The fund manager commented that whilst the general election has increased the level of economic uncertainty but he commented,’we are not investing in the economy, we are investing in individual companies. Some of the businesses in which we are invested do a lot of business overseas. Some of the smaller companies in which we are invested are exposed to the UK, but actually are in charge of their own destinies,.’
The Henderson Opportunities Investment Trust invests in large, mid and small cap companies.
Henderson commented, ‘there are times when there is no value in small caps. But now there is value there, 4D Pharma is a UK small cap that is in charge of its own destiny, they are trying to find drugs that cure people, the economy doesn’t matter.’
A significant slug of the capital in the Henderson Opportunities Investment Trust is deployed in AIM shares. Henderson commented, ‘with AIM diversity is what matters, there are some very early stage companies, and now some very mature businesses. But the management teams of the companies in which we are invested are excellent and have good products, and that is what matters, not whether they happen to be listed on AIM or not. I think the next generation of small-cap outperformers will come from AIM. Regulation is lighter touch there and that will help companies to grow.’
He added, ‘when we get to the stage where there is no value in smaller companies, then we can reduce our exposure, but there is value there no.’
Amongst the larger companies Henderson owns in the trust is banking giant HSBC, which he described as a ‘cheap share at the time of purchase.’
The Henderson Opportunities Investment Trust has returned £2,440 for every £1,000 invested over the past five years, compared with £1,880 for the average trust in the AIC UK All Companies sector in the same time period.
The Trust has total assets of £99.5 million and trades as a discount to net asset value of 16.5 per cent.