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Aurora Investment Trust moves into top gear thanks to value tailwind
Aurora Investment Trust (ARR) 233.99p
Gain to date: 38.4%
Original entry point: Buy at 169p, 22 October 2020
We said to buy value-focused Aurora Investment Trust (ARR) last October in the belief that value investing could make a comeback, which has since proved correct.
Full-year results on 2 June revealed that Aurora had beaten the FTSE All-Share by 4.5% in 2020, albeit falling by less than the market. The investment trust declined by 5.3% versus a 9.8% fall in the benchmark index.
In the five years since Phoenix took over management of the trust to the end of 2020, the net asset value grew by 47.7% versus a 34.5% rise in the benchmark.
Those figures are impressive, but they only include two months of the market’s shift in preference of value investing which began in November 2020.
In share price terms, rather than net asset value, Aurora has increased by 42% since 1 November 2020. This compares with 31.9% from the FTSE All-Share, says FE Fundinfo – demonstrating further outperformance.
Its portfolio has benefited from owning several companies that should benefit from the reopening trade, such as Sports Direct owner Frasers (FRAS), as well as positions in housebuilders Barratt Developments (BDEV) and Bellway (BWY) which are benefiting from a surge in the UK property market.
SHARES SAYS: Impressive performance figures. Keep buying.