Caledonia Investments: A tempting prospect for long term investors


#1

Caledonia Investments is an investment trust set up to manage the wealth of one of Britain’s richest families, who made their wealth in the shipping i
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#2

Seems to be finding its way again. Maybe it is time to go back in though I agree this is one for the long term but it should do well.

Thorough article bye the way, no one else does them like this, you’re kind of thorough but easy to read too.

I’d like to see you providing fact sheets and maybe data like morningstar type of info but getting properly to grips with trusts like this is fantastic.


#3

It’s a bit like RIT Capital Partners, family controlled and a range of investments including private equity.

I think now should be a good time to buy in because most of the gain from their private equity buys and from that Belgium fund have yet to come through.

I reckon this could really motor.


#4

Delighted to see Caledonia, my favourite investment trust, added to your Buy List. I think that despite the excellent recent performance there is more to come as the Company is very conservative and there is lots of hidden value in the unquoted assets as demonstrated by recent realisations. I think the Company provides the perfect balance between growth/risk and income.


#5

It does seem a bit like RIT Capital @Harjinder, and I guess that’s not a surprise because they’re both family controlled and represent old money, Rothschilds being particularly old.

It’s new to me but yeah I agree with @staddon on your hidden value comment. Looks good and looks like something I want to own a little bit of.


#6

The Park holiday buy looks fantastic to me. It is pretty much recession proof and the fact that it’s paying for itself, well, ye canny whack it as we say up here.

This trust lost its way for a few years so family ownership is no guarantee but I think it is right back on track again.

What I particularly like about it, and I know it is mentioned in the article is that they don’t gear up to buy businesses like Park too much. That’s the one thing that worries me about private equity.

I think this is a screaming buy right now, like @staddon says there’s a lot of hidden value there.


#7

When you bought it @staddon and @alexbarr was it on an even wider discount because it seems pretty wide to me.

It sounds like a very interesting fund and I am tempted to buy it but I just wondered if it had been very wide recently and if it might therefore go back there again.


#8

I have owned Caledonia for over 15 years and during that time it has ranged from being at a premium to a discount of 35%. The widest discount was after a period of particularly poor relative performance ( which I think was too harshly treated by the market ) and which I do not think will be repeated given the changes made over recent years, as well as the addition of specialist managers. Given that there is low turnover in the portfolio you know what you are buying into going forward, and if you like the look of the portfolio (as I do, with the exception of Avanti Communications!) I think it is very attractively priced at the moment.


#9

I don’t own any of this but I’ve been looking at it with a view to investing. I’m really attracted to what looks to me to be pretty good value compared to just about everything else out there.

I think @staddon has made a good fist of explaining it when he said: "Given that there is low turnover in the portfolio you know what you are buying into going forward"