Investors' Chronicle
‘Buybacks are more interesting than dividends’: Charlotte Cuthbertson of Migo Opportunities
Aug 13, 2024
Charlotte Cuthbertson, a manager at Migo Opportunities Investment Trust, dives into the fascinating world of investment trusts. She discusses the hunt for valuation anomalies and why she finds share buybacks more appealing than dividends. The conversation covers the impact of rising interest rates on sectors like infrastructure and biotech, as well as innovative alternative investments like music royalties. Cuthbertson also highlights the importance of private equity trusts and the influence of activist investors in shaping trust strategies.
30:30
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The volatility in the investment trust market has created unique opportunities in sectors like alternative income and private equity, allowing managers to target undervalued assets.
- Charlotte emphasizes that share buybacks are more appealing than dividends as they can enhance valuation for discounted trusts, reflecting better capital allocation strategies.
Deep dives
Investment Trust Market Dynamics
The investment trust market has faced significant volatility over the past two years, presenting both challenges and unique opportunities for portfolio managers. Many trusts are currently trading at large discounts, prompting a strategic pivot towards sectors such as alternative income, which includes infrastructure and renewables. These sectors have seen a decline in demand due to rising interest rates, but the oversupply of certain trusts creates attractive buying conditions. By focusing on discounted investment vehicles, managers can build a diverse portfolio that capitalizes on market mispricing and investor sentiment shifts.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
