Herald Investment
Trust - Update note from
QuotedData
16th January
2025
Vote against Saba to
protect your investment
Herald Investment Trust
(HRI) exemplifies the benefits of the closed-end structure,
allowing its manager to take a long-term view, thanks to its
permanent pool of capital, and tap into up-and-coming technology
stocks at an early stage of their development, thus providing
its shareholders with a differentiated source
of alpha - a measure
of uncorrelated returns and manager skill, the hallmark of any good
actively managed fund.
We believe that the recent
attempts by Saba Capital (a US activist hedge
fund that is attacking the investment trust sector) to wrestle
control of HRI, change its investment mandate, and install itself
as the investment manager represents a significant risk
to its shareholders' investment that could see them missing out on
significant upside. We side with HRI's board, believing very
strongly that shareholders of all sizes should ensure that they
vote to reject all of Saba's resolutions at the upcoming general
meeting, details of which can be found here.
Despite the unwelcome
distraction of Saba's antics, HRI generated decent returns over
2024, with several of its holdings reporting triple-digit returns.
In part, this reflects HRI's exposure to the themes of artificial
intelligence (AI)-based services or their critical infrastructure.
HRI's share price has also benefitted from the recent narrowing of
its share price discount to net asset
value (NAV).
Full
Research:
https://quoteddata.com/research/herald-investment-trust-vote-against-saba-to-protect-your-investment-qd/
This research is also
available free on our website www.quoteddata.com
where you will also find
news, performance data and factsheets on every London listed
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NB: Marten & Co was
paid to produce this note Herald Investment Trust Plc, and it is
for information purposes only. It is not intended to encourage the
reader to deal in the security or securities mentioned in this
report. Please read the important information at the back of this
note. QuotedData is a trading name of Marten & Co Limited which
is authorised and regulated by the Financial Conduct Authority.
Marten & Co is not permitted to provide investment advice to
individual investors categorised as Retail Clients under the rules
of the Financial Conduct Authority.
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