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BlackRock Throgmorton shoots the lights out amid mid-cap momentum
BlackRock Throgmorton (THRG) 916.59p
Gain to date: 30.4%
Original entry point: Buy at 702.79p, 26 November 2020
Our call to buy investment trust BlackRock Throgmorton (THRG) for its focus on quality companies which had been sold off in the initial value rally has proved a canny trade.
The portfolio is dominated by small and mid-cap names which have performed strongly in the interim. A portfolio update on 11 May revealed that in the three months to 30 April the net asset value and share price had increased 18.4% against a 15.6% advance in the benchmark.
A big contributor to this positive showing has been ESG-focused asset manager Impax Asset Management (IPX:AIM) as well as building materials firm Grafton (GFTU) and pharmaceutical services company Ergomed (ERGO:AIM), which announced an expansion in Japan in April.
Commenting on the recent performance fund manager Dan Whitestone said: ‘The general pattern was of strong trading with good growth even for those who grew very fast in 2020, and so the higher share prices now are justified by the higher profits than had been expected a year ago.’
SHARES SAYS: The trust’s focus on quality small and mid caps should stand it in good stead for the longer term. Still a buy.