EDINBURGH: £1bn trust sees bounce and UK plc is next, insists its boss
Investment trust Edinburgh, a £1 billion fund investing primarily in UK equities, has experienced a resurgence since new managers took over in spring 2020.
Under the leadership of James de Uphaugh, the lead fund manager at Liontrust, the trust’s share price has rebounded significantly and he is confident that there is more growth to come.
Despite the uncertainty surrounding the UK economy, De Uphaugh remains optimistic. He believes that the economy is not as bad as it was last October when energy bills were rising and bond prices were increasing.
According to De Uphaugh, there are many strong UK companies, but their value is not accurately reflected in the stock market. He explains that stock markets are influenced by perception, and currently, the perception is that UK businesses are struggling.
De Uphaugh is confident that if the UK stock market improves, the trust will perform well. Currently, the trust’s share price is discounted by nine percent compared to the value of its assets.
The trust, previously managed by Invesco, invests in 50 stocks, primarily FTSE 100 companies. Despite focusing on strong market positions, De Uphaugh takes a flexible approach and invests across different themes.
He explains that the portfolio is designed to perform well in all market conditions. The team conducts thorough research and meets with company management to make informed investment decisions.
For example, the portfolio includes companies that have made unexpected comebacks, such as Marks & Spencer.
De Uphaugh highlights Whitbread, owner of Premier Inn, as an example of Darwinism in action. He praises the company for its strong market position and its ability to thrive in the budget price market during the
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