Cash pile grows as valuations climb
A strong contribution from Global Opportunities Trust (GOT)’s equity portfolio led to decent NAV growth over 2025. Shareholders benefitted further from a narrowing of its – still too-wide, in our view – discount.
The manager observed the rising valuation multiples on many of the stocks in the portfolio and in the wider market, and decided to book profits and raise cash levels. The portfolio is, therefore, well-positioned to take advantage of a decisive setback.
The trust is no longer self-managed. This change should give it more flexibility when it comes to using gearing and derivatives in future. For the moment, the manager is seeing some opportunities in mid-cap companies with idiosyncratic valuation drivers and low economic sensitivity.
