No. of Recommendations: 3
I noticed a quite fun article while researching some stocks & funds. My own opinions, below...
3i group is the biggest investment trust in the UK by far, currently with a market cap of about £30 billion.
(Investment trusts are a traditional UK closed-end collective investment, often a bit like a small active-managed ETF in practice, with a bit higher fees and modest gearing.)
Anyway, 3i invests in other companies. It seems one of the companies they held was "Action", a European discount retailer.
Action did rather well. Extremely well. But it's a private company. The most effective way to buy meaningful amounts of Action was via 3i's stake.
The premium to buy into 3i rose, till it was trading near a 70% premium to published NAV.
Such a premium is ... unusual ... for a UK investment trust, normally they trade on discounts to NAV.
It seems 3i let their winner run with Action till it became 60-70% of the portfolio.
What do you think happened next?
ii.co.uk - Whats happened 3i group and it now cheapYahoo Finance: 3i Group Ord (III.L) Stock Price, News, Quote & HistoryTRS
