| Edison Investment Research Limited
London, UK, 20 November 2023
Edison issues update on Henderson Opportunities Trust (HOT): Patience is bitter but the fruit is sweet Underpinned by attractively low valuations, the investment managers for Henderson Opportunities Trust (HOT) believe that smaller companies will rally strongly on a turn in market sentiment. Although the timing and catalyst for this is no easier to pinpoint than when we wrote our detailed note in July, in their view, the most likely trigger will be a return to confidence in the UK economy. In this respect, growing indications that the interest rate cycle has peaked, and a more robust domestic economy than implied by smaller company valuations, are positive indicators. While the last two years have been painful, past recoveries have shown how this can quickly change, and for HOT, this has historically generated strong NAV appreciation and discount narrowing. The managers note that in many cases, valuations already discount a sharp recession and that the breadth of the sell-off has indiscriminately affected many companies with strong management, robust operational performance and good long-term growth prospects. While the timing of a small company recovery is difficult to predict, we believe the potential for strong returns makes HOT an attractive complement to more mainstream trusts, which should more closely track broader market developments. HOT’s size makes it nimble, and its permanent capital base supports a patient approach. About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Martyn King +44 (0)20 3077 5700 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. |
1777465 20-Nov-2023
