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Scottish Mortgage heading for where

Closed-end funds and OEICs
scrumpyjack
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Re: Scottish Mortgage heading for where

#337852

Postby scrumpyjack » September 3rd, 2020, 10:25 am

and I see that SMT's share price is now at a 2% or 3% discount to NAV when often it has been at a premium

bluedonkey
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Re: Scottish Mortgage heading for where

#337856

Postby bluedonkey » September 3rd, 2020, 10:37 am

This may have also accounted for some of the recent share price rise for SMT:
https://www.ftadviser.com/investments/2 ... -eyes-ipo/

yorkshirelad1
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Re: Scottish Mortgage heading for where

#337863

Postby yorkshirelad1 » September 3rd, 2020, 10:45 am

scrumpyjack wrote:I see BG have announced they have cut their Tesla shareholding. Seems sensible, it was becoming rather overweight in the SMT portfolio

https://www.thetimes.co.uk/edition/busi ... -tchvr8vrr


Thanks for posting, I saw this earlier too.
Does anyone know (or is the information available anywhere) how how many they sold and what they bought them for?
That typically is what a lot of us would do with our shareholdings, and working out the gain/loss.
One would hope that SMT make a tidy gain, and for their shareholders, a nice (tax free becuase it's inside an investment trust) gain by proxy.
I checked the latest Annual report (May 2020), and there doesn't seem to be a figure for the cost of the Tesla holding.
Reports: http://www.scottishmortgageit.com

bluedonkey
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Re: Scottish Mortgage heading for where

#337868

Postby bluedonkey » September 3rd, 2020, 10:55 am

The Tesla gain will already be reflected in SMT's share price.

richfool
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Re: Scottish Mortgage heading for where

#337883

Postby richfool » September 3rd, 2020, 11:21 am

yorkshirelad1 wrote:
scrumpyjack wrote:I see BG have announced they have cut their Tesla shareholding. Seems sensible, it was becoming rather overweight in the SMT portfolio

https://www.thetimes.co.uk/edition/busi ... -tchvr8vrr


Thanks for posting, I saw this earlier too.
Does anyone know (or is the information available anywhere) how how many they sold and what they bought them for?
That typically is what a lot of us would do with our shareholdings, and working out the gain/loss.
One would hope that SMT make a tidy gain, and for their shareholders, a nice (tax free becuase it's inside an investment trust) gain by proxy.
I checked the latest Annual report (May 2020), and there doesn't seem to be a figure for the cost of the Tesla holding.
Reports: http://www.scottishmortgageit.com

Thanks for that update. I was becoming a little concerned myself (about SMT's high exposure to Tesla) and had been thinking about pruning my holding in favour of Monks, which has a lower exposure. I had been holding on to maximise any gains from Tesla splitting its shares and from additional purchases arising from its possible inclusion in the S&P 500 Index.

Dod101
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Re: Scottish Mortgage heading for where

#338103

Postby Dod101 » September 4th, 2020, 1:55 pm

SMT has good and truly come off the boil today, but never mind we all know it is volatile.

Dod

johnstevens77
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Re: Scottish Mortgage heading for where

#338119

Postby johnstevens77 » September 4th, 2020, 3:17 pm

The tech stocks had a sell off and it has a big exposure to them.

john

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Re: Scottish Mortgage heading for where

#338154

Postby Urbandreamer » September 4th, 2020, 6:13 pm

Dod101 wrote:SMT has good and truly come off the boil today, but never mind we all know it is volatile.

Dod


It started yesterday, and confuses me.

On the 3'ed we discover that it has reduced it's holding in Tesla and has cash to invest. The price falls significantly. It does so again today!

As you say, never mind.

Those who hold, can take the view that nothing underlying is the cause for the fall.

What's more those, like yourself, who sold higher, can buy back in. While those, like me, can stop worrying about selling and consider at what point we top up.

Dod101
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Re: Scottish Mortgage heading for where

#338182

Postby Dod101 » September 4th, 2020, 7:58 pm

Urbandreamer wrote:
Dod101 wrote:SMT has good and truly come off the boil today, but never mind we all know it is volatile.

Dod


It started yesterday, and confuses me.

On the 3'ed we discover that it has reduced it's holding in Tesla and has cash to invest. The price falls significantly. It does so again today!

As you say, never mind.

Those who hold, can take the view that nothing underlying is the cause for the fall.

What's more those, like yourself, who sold higher, can buy back in. While those, like me, can stop worrying about selling and consider at what point we top up.


I must say that I am quite relaxed about it. No share goes up vertically for ever, and Scottish Mortgage has usually been volatile; it is just that this year so far it has been a very good upwards only escalator until yesterday.

Dod

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Re: Scottish Mortgage heading for where

#338222

Postby unperplex » September 4th, 2020, 11:01 pm

An opportunity to buy a few more ? I did so this morning.....

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Re: Scottish Mortgage heading for where

#338329

Postby MaraMan » September 5th, 2020, 12:30 pm

Yes you have to accept the volatility of SMT, although I am pleased I cut a third of my holding at it's recent high, it still remains my biggest single holding. Amazon wasn't far behind though and am also pleased I cut my holding by two thirds at it's high earlier in the week. I don't discount buying back in though, but the stakes were getting too high for my appetite.

MM

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Re: Scottish Mortgage heading for where

#338343

Postby Adamski » September 5th, 2020, 1:18 pm

The tech sell off was overdue. It'll be interesting what'll happenbto the nasdaq monday. My guess is it's not taking money out of the market and will be largely isolated to tech which has hit a limit and losing steam, not market wide.

Dod101
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Re: Scottish Mortgage heading for where

#338362

Postby Dod101 » September 5th, 2020, 2:47 pm

This morning the FT tells us that the huge tech rally was largely caused by Softbank, a Japanese Group which 'gobbled up' share options which has been described as a 'dangerous' bet. I am sure that Baillie Gifford would have been well aware of that and I assume that their sale of the likes of Tesla was well informed.

Dod

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Re: Scottish Mortgage heading for where

#338389

Postby Wuffle » September 5th, 2020, 4:49 pm

'I am sure that Baillie Gifford would have been well aware of that and I assume that their sale of the likes of Tesla was well informed.'

I give this sort of thing some importance, rightly or wrongly.
I don't know, because I am not of this world, but loads of this lot will have 'gone to school together', same social circle.
I see the IT fees as a decent bet that they know what the hell is going on.
I don't just view it as a cost.
If you are ex-industry, it might be a cost to you but to me it is a bet.
Would be interested in other points of view.

W.

Dod101
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Re: Scottish Mortgage heading for where

#338398

Postby Dod101 » September 5th, 2020, 5:35 pm

Wuffle wrote:'I am sure that Baillie Gifford would have been well aware of that and I assume that their sale of the likes of Tesla was well informed.'

I give this sort of thing some importance, rightly or wrongly.
I don't know, because I am not of this world, but loads of this lot will have 'gone to school together', same social circle.
I see the IT fees as a decent bet that they know what the hell is going on.
I don't just view it as a cost.
If you are ex-industry, it might be a cost to you but to me it is a bet.
Would be interested in other points of view.

W.


Well I do not think that James Anderson would have gone to school with the likes of Ellon Musk or those in the US buying shares in Tesla, or indeed the Japanese who are supposed to be behind the ramping up of the tech shares but what I meant was that Bailie Gifford is now a very large and influential fund manager (as well as being a very successful one) and they will have their ear to the ground. I imagine will have been well up with the reasons for the huge rise in US tech stocks and probably timed their sales accordingly. They are very well represented in all the world markets. Do not forget also that they are an unlimited partnership and as such you can be certain that the owners (partners) will be taking great care in what they do. I am not ex the fund management industry but I am sure that they will have people dedicated to study and pick up market intelligence. That is why we pay the fees we do. It is just a pity that so many fund managers do not seem to have that ability or interest. I think Schroders do, but they are quite different from BG.

Dod

scrumpyjack
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Re: Scottish Mortgage heading for where

#338401

Postby scrumpyjack » September 5th, 2020, 5:54 pm

One wonders how they reinvested the proceeds of the sale of part of the Tesla holding. They might have kept some/most in cash.
If the share price goes to much of a discount to NAV they will be buying back shares. They are quite active in selling new shares when the SP is above NAV and buying back when below.

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Re: Scottish Mortgage heading for where

#338434

Postby richfool » September 5th, 2020, 11:21 pm

Adamski wrote:The tech sell off was overdue. It'll be interesting what'll happenbto the nasdaq monday. My guess is it's not taking money out of the market and will be largely isolated to tech which has hit a limit and losing steam, not market wide.

I don't see it as a sell-off, just a correction. Once the froth has settled I think the sector will resume its upward trend.

BG seem to have timed their reduction in Tesla appropriately.

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Re: Scottish Mortgage heading for where

#338574

Postby richfool » September 6th, 2020, 4:15 pm

I was comparing how some of my holdings were affected by the fallback. It was interesting to note the percentages that the SP of each of these fell by on friday:

SMT -6.45%
USA -6.50%
MNKS -3.39%

I ponder if there is a direct relationship between the percentage fall and the percentage of Tesla that each trusts holds.

scrumpyjack
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Re: Scottish Mortgage heading for where

#338579

Postby scrumpyjack » September 6th, 2020, 4:32 pm

richfool wrote:I was comparing how some of my holdings were affected by the fallback. It was interesting to note the percentages that the SP of each of these fell by on friday:

SMT -6.45%
USA -6.50%
MNKS -3.39%

I ponder if there is a direct relationship between the percentage fall and the percentage of Tesla that each trusts holds.


AFAIW we don't know how much Tesla SMT holds as BG announced they had cut the holding substantially but the SMT current holdings have not been disclosed. Maybe the market is guessing. BG do disclose the NAV daily and at close of business 3 Sept it was 947p

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Re: Scottish Mortgage heading for where

#339181

Postby richfool » September 9th, 2020, 10:30 am

scrumpyjack wrote:
richfool wrote:I was comparing how some of my holdings were affected by the fallback. It was interesting to note the percentages that the SP of each of these fell by on friday:

SMT -6.45%
USA -6.50%
MNKS -3.39%

I ponder if there is a direct relationship between the percentage fall and the percentage of Tesla that each trusts holds.


AFAIW we don't know how much Tesla SMT holds as BG announced they had cut the holding substantially but the SMT current holdings have not been disclosed. Maybe the market is guessing. BG do disclose the NAV daily and at close of business 3 Sept it was 947p

Yes, indeed. I would be very keen to know what percentage holding SMT has of Tesla after they reduced their holding. USA similarly.

Otherwise, Monks becomes ever more attractive to me (smaller holdings).

I think I heard on Bloomberg that Tesla was down 21% after hours last night in the USA.

They said Apple too had fallen more overnight.


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