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Views please on a replacement for Smithson IT
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MarkSp
Posted: 29 January 2025 06:58:32(UTC)
#11

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I like the idea but I have not been impressed by the FM which is why I sold mine.

I am not sure if there is an internal contradiction in the strategy. Fsmith is a compounder high ROCE, moats high Operating margins etc..............is that what you will see in a smaller midcap that is investing in its business?
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2 users thanked MarkSp for this post.
Ramondo on 29/01/2025(UTC), Sheerman on 29/01/2025(UTC)
Johan De Silva
Posted: 29 January 2025 07:33:00(UTC)
#12

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They are all the same being too diversified, even if you buy with more of a US tilt your paying more there and a whipsaw effect to consider. Sorry forum members!

The only way I can see to get out of this loss is to buy something specific and take a narrow bet. Make sure it has a macro tailwind like Financials and IPO's and on a discount. Make sure cash flow is good... Buy CHRY. There are other effective ways by being even more narrow and specific company stocks (not me but some hold XPS Pensions, while I hold ALPH) but that would increase risk. In CHRY the 5 or more stocks is specific enough and in the sweet spot for growth.

There will be manager risk like what to do with all the cash on exits but they are awhere of this. I see this as a 12-18 month investment with a view to exit and just buy the smaller cap if US heavy index WSML if/when CHRY has gained 60 percent and rates get seriously cut in 2026 with inflation a thing of the past... possibly avoiding stock market crash along the way.

The choice is yours, go broad as mentioned previously by ben or go narrower. Anything else is same old.
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4 users thanked Johan De Silva for this post.
Ramondo on 29/01/2025(UTC), Sheerman on 29/01/2025(UTC), Sara G on 29/01/2025(UTC), ben ski on 29/01/2025(UTC)
Big boy
Posted: 29 January 2025 09:03:37(UTC)
#13

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SMT and EWI are excellent "long term" investments according to many/most Members so why have Members changed their mind short-term?? ......perhaps they now realise that they are not so clever at reading markets 10 years ahead.

Its not about buying the best stocks but when you buy them and IMO it is the most important part of managing money but sadly most FMs lack knowledge and skills in this area. Most PIs dont stand a chance.

If you pick a stock and buy at 12 month lows and sell at 12 month highs you should add value whereas buying SMT at all time high when will you get your money back ...dont worry its long term so dont worry.

Remember many. FMs have to invest in certain sectors/areas but they would not put their own money in. Same with those buying trackers etc.

Why are Members guessing when making investment decisions and how do you know XYZ is the right. tracker or passive out of many.
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Ramondo on 29/01/2025(UTC), ben ski on 29/01/2025(UTC), BigLoss on 31/01/2025(UTC)
Raj K
Posted: 29 January 2025 10:32:56(UTC)
#14

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@ BBOY

Its quite simple some members dont want to keep switching between different investment trusts/funds.. I would assume those that dont want to consantly switch and are going active want a strategy that will compound over time. Your strategy is good for you but maybe not for others....?

To OP


I have held SSON since IPO and have been adding since it fell considerable after 2021/22.. Have a look at the last few shareholder letters and AGM commentary to see how they have evolved their strategy over recent years. Look at their mistakes and what they are doing about them.What is the current valuation of the companies on a look through basis and what growth in earnings do they anticipate? Only you can decide if you are comfortable with something but that is key. I am comfortable with this small cap quality strategy and thats why i hold and add monthly.

In the IT space its the only one that fits my tick list of focsuing on good quality small cap companies. I dont like GSCT becuase its too diverse and its performance has not been anything special.

My decision is my own....

You may need to ignore the loss you have to form a unbiased view on the merit of the investment today.

Or just go for a global smaller companies tracker. I introduced Vanguard Global Smaller Companies last year and add monthly.
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5 users thanked Raj K for this post.
Sheerman on 29/01/2025(UTC), S Dobbo on 29/01/2025(UTC), Sara G on 29/01/2025(UTC), Keith Cobby on 29/01/2025(UTC), BigLoss on 31/01/2025(UTC)
Big boy
Posted: 29 January 2025 12:32:20(UTC)
#15

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Raj K;332535 wrote:
@ BBOY

Its quite simple some members dont want to keep switching between different investment trusts/funds.. I would assume those that dont want to consantly switch and are going active want a strategy that will compound over time. Your strategy is good for you but maybe not for others....?


My decision is my own....

You may need to ignore the loss you have to form a unbiased view on the merit of the investment today.

Or just go for a global smaller companies tracker. I introduced Vanguard Global Smaller Companies last year and add monthly.



I am happy to switch every few years and many stocks I have had for years. I seem to recollect you deal monthly in a number of stock so you could well be more active than me ...At least I have a reason to buy the Stock Market rather than going willey nilly into a tracker where clearly you have not done your DD...

My DD is proven mathematically so hopefully I will add value rather than using a pin for DD.
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Rookie Investor
Posted: 29 January 2025 12:35:54(UTC)
#16

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Big boy;332553 wrote:
Raj K;332535 wrote:
@ BBOY

Its quite simple some members dont want to keep switching between different investment trusts/funds.. I would assume those that dont want to consantly switch and are going active want a strategy that will compound over time. Your strategy is good for you but maybe not for others....?


My decision is my own....

You may need to ignore the loss you have to form a unbiased view on the merit of the investment today.

Or just go for a global smaller companies tracker. I introduced Vanguard Global Smaller Companies last year and add monthly.



I am happy to switch every few years and many stocks I have had for years. I seem to recollect you deal monthly in a number of stock so you could well be more active than me ...At least I have a reason to buy the Stock Market rather than going willey nilly into a tracker where clearly you have not done your DD...

My DD is proven mathematically so hopefully I will add value rather than using a pin for DD.


Can you please share the proof on here, just for my amusement?
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Big boy on 29/01/2025(UTC)
Big boy
Posted: 29 January 2025 12:43:10(UTC)
#17

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n you please share the proof on here, just for my amusement?[/quote]

Supplied the other day and I had a response from a member conforming my maths ..

I hope you are amused and I must admit I find Stock Markets exciting and amusing ..

For decades Investors have amused me and thank you for joining the party...
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Martin53
Posted: 29 January 2025 16:09:08(UTC)
#18

Joined: 28/03/2016(UTC)
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IWFS - iShares MSCI World Mid-Cap Equal Weight UCITS ETF might be a passive alternative in mid-cap.
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3 users thanked Martin53 for this post.
Sara G on 29/01/2025(UTC), Ramondo on 29/01/2025(UTC), MarkSp on 29/01/2025(UTC)
Dexi
Posted: 29 January 2025 16:11:07(UTC)
#19

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A quick trawl through JustETF.com reveals several ETFs that might substitute for Smithson .....

SPX4......SPDR S+P 400 US Mid cap
R2SC.....Russel 2000 US Small cap
ISP6.......US small cap
PSRF.....Invesco FTSE Rafi 1000
IWFS.....MSCI World Mid cap equal weight
WLDS....MSCI World Small cap ( 56 % US )

Mix + match to your own outlook.
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Johan De Silva on 29/01/2025(UTC)
Keith Cobby
Posted: 29 January 2025 16:12:48(UTC)
#20

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Piece by Jonathan Guthrie in the FT "Do investment trust discounts even matter?"
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1 user thanked Keith Cobby for this post.
Jesse M on 29/01/2025(UTC)
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