Gearing on Lowland significantly increased

James Henderson has significantly increased gearing on his Lowland investment trust over recent mon...

James Henderson has significantly increased gearing on his Lowland investment trust over recent months to buy shares at what he feels are cheap prices. He has increased the level from 3% ahead of the sub-prime crisis in March last year to 20% today. “In the summer last year, I held more than 10% in cash so the vehicle was well positioned to make investments when value re-emerged,” Henderson said. “To carry on buying, we have moved gearing to 120% over the last three months.” The manager has used short-term loans from RBS to increase gearing on the value-orientated trust, buying smaller...