The investment trust universe is experiencing an upsurge in M&A activity, says MAM Funds' Nick Greenwood, who has reshaped his portfolio to take advantage of the trend.
Greenwood, manager of the £35m Miton Worldwide Growth investment trust, has doubled his weighting in closed-ended fund of hedge funds to 10% in the view the sector is trading on wide discounts and consequently attracting arbitrageur activity. The manager says he is closely watching moves made by activist investors as they create illiquidity in areas with poor sentiment. He has added to positions in the BlackRock Absolute Return, Dexion Trading Limited and Cazenove Absolute Equity trusts in the past month, taking the average discount of holdings in the portfolio to 22%. “At the star...
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