Doceo Discount Watch

Discount Watch

We estimate the number of funds trading at year-high discounts to net assets fell by 1 to 11 last week. Alternatives still dominate the list with nine names as high bond yields continue to weigh on sentiment and share prices. But which alternative fund could have another reason for appearing on the list?

By Frank Buhagiar

We estimate there to be 11 investment companies that saw their share prices trade at 52-week high discounts to net assets over the course of the week ended Friday 14 February 2025 – one less than the previous week’s 12.

Fourth consecutive week that the number of 52-week high discounters has fallen. Alternatives still dominating, good for nine of the eleven: four from renewables, three from private equity/growth capital and one each from property and debt. Concerns over higher bond yields, leading to higher discount rates and lower asset valuations still weighing on sentiment.

Arguably, Literacy Capital’s (BOOK) appearance on the Discount Watch nothing to do with being an alternative. A look at the graph shows the shares took a turn lower from 30 January onwards, falling from 436p to 420p on 14 February. Shares had already been under pressure but seems the company’s press release of 30 January 2025 didn’t go down too well with the market. The reason, Chairman Paul Pindar pledging 15,000,000 BOOK shares as security against a personal loan facility with HSBC to provide liquidity for personal property investment commitments. means, with the share price at 410p, the shares being pledged have a value of over £61m, equivalent to a quarter of the market cap. Market perhaps worried that if Pindar’s property investments don’t pay off and HSBC takes control of the shares, there could be a large line of stock looking for a new home.

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