Henderson Alternative Strategies Trust PLC (LON:HAST) (formerly Henderson Value Trust) has been reconstructed into a portfolio of specialist and alternative funds. The managers have focused on private equity, hedge funds, property and specialist sector and geographical funds that individual investors are unable or unlikely to access. The aim is to achieve returns in excess of those from global equities on a three-year view, but with limited correlation to equity markets. The reconstruction is beginning to show through in performance, and over 12 months the trust has outperformed its informal composite benchmark and the FTSE All-Share. The discount remains wide at c 19%, reflecting a difficult history and a climate of investor risk aversion, but has scope to narrow should the performance upturn be sustained.
Investment strategy: Diverse portfolio of alternatives
Managers Ian Barrass and James de Bunsen specialise in alternative strategies, and can draw on the macro views of Henderson’s wider multi-asset team to identify investment themes. Detailed due diligence is undertaken on individual funds before investment, and the portfolio operates within risk limits on fund type and focus, to ensure diversification. Around 75% of the portfolio is in core, long-term holdings with the balance available for tactical opportunities. The managers have taken a patient approach to exiting legacy holdings to minimise NAV attrition.
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