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LTI - Lindsell Train Investment Trust PLC - What's going on

Investment discussion for beginners. Why you should invest your money, get help getting started
Alaric
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Re: LTI - Lindsell Train Investment Trust PLC - What's going on

#243935

Postby Alaric » August 13th, 2019, 9:38 am

SalvorHardin wrote:
LTI benefits in a similar way. LTI has its own investments but it also indirectly gets fees from managing Lindsell Train's clients' investments through its stake in Lindsell Train.


There's a valuation problem. They have a formula for stating the NAV for the value of the fund management company in the overall mix, but the market may or may not believe in it. I think they relate it to the funds under management so when Hargreaves announced it was moving fund management away from LTI because LTI was a shareholder in Hargreaves, that affected the NAV. It's a problem with any IT as to how much the unquoted investments are really worth, so the problem is devolved to the wider market who will mark the share price to a premium or discount.

bjmarren
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Re: LTI - Lindsell Train Investment Trust PLC - What's going on

#243946

Postby bjmarren » August 13th, 2019, 10:16 am

HI Salvor,

Thanks for your reply and more detailed info on BAM in general. It does look interesting and I'll read up on it further. Regarding MCT, "The Fund seeks to achieve its investment objective by investing predominantly in securities of companies and REITs domiciled in Canada and the US." This was taken from its page on MorningStar.

Cheers!

Brendan

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Re: LTI - Lindsell Train Investment Trust PLC - What's going on

#244015

Postby Lootman » August 13th, 2019, 3:38 pm

SalvorHardin wrote:Blackstone is a lot more investable for UK investors nowadays because it changed from an LLP to a corporation last month, which removes the need to complete a K-1 form (and thus a tax return) for America’s IRS.

Ah, I knew that BX was considering shedding its LLP status but not that it had already done so. K-1 forms are a royal pain in the backside.

I have actually held BX a couple of times but did it through LEAPS so as to avoid the K-1 issue. If listed options are available then you can buy long-dated deep-in-the-money calls and get exposure without the paperwork. You don't get the dividends, of course, but that can be a blessing given the tax withholding issue. And the lack of dividends makes the call options cheaper.

LTI has lost a third of its value in just a few weeks, although is still higher than it was at the beginning of the year. I would be tempted except that I am already over-weight.


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