Weekly Gainers
A new leader atop Winterflood’s list of highest monthly movers in the investment company space. But which fund’s appearance in the top five could well be down to it being viewed as something of a safe haven?

Frank Buhagiar•09 Sep

The Top Five
Doric Nimrod Air 3 (DNA3) soars to the top of Winterflood’s list of highest monthly movers in the investment company space after seeing its share price gain on the month increase to +16.7% from +14.8% previously. Last month’s news that sister fund Doric Nimrod Air 2 (DNA2) is selling its remaining five Airbus A380-861 aircraft to Emirates for more than expected still working its magic on DNA3’s share price. DNA2 too saw its monthly gain increase to +15.8% from +14.6%, enough to secure second place on the list. The two aircraft leasing funds still flying in tight formation then.
PRS REIT (PRSR) slips down to third. Shares up +15.1% on the month but that’s down on last week’s +18.2%. Where to begin with this one? At the beginning. 29 August 2024, the build-to-rent REIT announced it had received a letter from shareholders accounting for 17.3% of the company. The letter calls for a general meeting to be held at which shareholders can vote to replace two of the five existing independent Non-executive Directors, including Chairman, Stephen Smith, with Robert Naylor and Christopher Mills. At the time Winterflood noted “the requisitioning shareholders have particular concerns regarding the management contract extensions announced in July. The inability to terminate the manager until 2029 is considered problematic from a governance perspective.”
2 September 2024, PRSR issues a much longer press release. Key points include Rothschild appointed as a third advisor; formation of a Board sub-committee comprising the three directors not subject to calls to be replaced to engage with the requisitioning group; a defence of the discount at which the shares trade by referencing other REITs sitting on large discounts too; and a promise that further actions/considerations will be communicated with the results in early October.
The above prompted requisitioning shareholders Harwood Capital and CCLA to publish letters setting out their positions. These include concerns over the extra expense of appointing a third adviser, the Board’s inaction in tackling the discount and the lack of shareholder consultation ahead of the management contract extensions which the shareholders believe are a poison pill for any would be acquirer. As noted last week, all the hallmarks of a long-running saga here.
Balanced Commercial Property Trust (BCPT) came from nowhere to take fourth spot after announcing it has agreed to be acquired by private investment firm Starwood Capital Group in a recommended cash offer of 96p per BCPT share. That’s a 21.5% premium to the undisturbed share price of 79p and an 8.7% discount to BCPT’s last reported unaudited NAV per share of 105.1p as at 30 June 2024. News was good for a spike in the share price so that the shares are now up +12.7% on the month. With shareholders accounting for 25.83% of BCPT’s issued ordinary share capital backing the Starwood bid, seems less chance here of a long-running saga.
Majedie Investments (MAJE) completes the top five thanks to a +12.3% share price increase. No news out from the flexible investor this past week or so, but a look at the graph shows the share price started its move higher roundabout 30 August. That’s the same date equity markets embarked on their latest wobble – the start of the S&P 500 and Nasdaq’s move downwards can be traced back to 30 August exactly. What’s more, the spike in MAJE’s share price coincides with an uptick in trading volumes, suggesting investors may well view the fund as a safe haven.
Scottish Mortgage
Scottish Mortgage’s (SMT) share price finished the week ended Friday 6 September 2024 with a monthly loss of -2.5%, an improvement on the -4.2% deficit seen seven days earlier. NAV improved too, down -0.5% compared to -4.3% previously. The wider global sector finished the week flat on the month, it had been nursing a -1.5% loss. Once again, SMT, been busy buying back its own shares but this week, Non-executive Director Sharon Flood joined in on the act, acquiring £20,000 worth of stock. Combination of the company and Director buys, enough for a positive week for the shares it seems.
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