We explain why the sector is behaving in an unusual way
Thursday 27 Jun 2019 Author: Martin Gamble
There is an unusually wide spread between the premiums and discounts in the private equity-focused investment trust space. We would normally expect such products to trade below the value of their underlying assets yet the sector currently has some trading on discounts as wide as 40% and premiums of more than 26% to net asset value (NAV). Investment bank Stifel argues there should be a natural discount rate of...