Discount opportunities

The ‘value' approach to investing in investment trusts is not without its risks, but the potential returns are mouth-watering

There are really only two factors to consider when contemplating any investment: are you going to make money and over what timescale? While it is not difficult to make money over the longer term, the challenge is to generate a profit over a shorter period. This requires active management and an increased risk tolerance. Investment managers tend to complicate matters by comparing performance against a benchmark – typically an index or their peers. Far be it for me to denigrate the sector, but private clients quite rightly want to make money. This was demonstrated in spades in 2008 when a ...