Could Edinburgh Worldwide be the smaller companies Scottish Mortgage?


#1

Originally published at: https://whichinvestmenttrust.com/could-edinburgh-worldwide-be-the-smaller-companies-scottish-mortgage/

It initially experienced sluggish performance after changing its mandate in 2014, but has cantered ahead recently of both its index and peers. Could the new mandate drive long term success? Fast Facts Invests in worldwide growth stocks Technology and Biotechnology stocks account for 2/3rds of the portfolio New strategy adopted in 2014 has resulted in…


#2

I think it looks promising, exciting even but I’d like to see a couple of more years of good performance to be sure this new management trio work well together because it 'aint a given.

One to watch though. This wasn’t even on my radar. I’ve heard of Edinburgh Worldwide but I though it was an Aberdeen fund.


#3

It has been performing rather well for some time, even before the current management team @casper. I think the Baillie Gifford systems internally seem to be robust enough for the success to continue, after all, the article isn’t headlined is Edinburgh Worldwide the new Scottish Mortgage for nothing, it’s because EWI is essentially coping the investment style of SMT.


#4

Feb 5th, Monday, after the Friday afternoon fall in USA. No warning for such a large drop in share prices, that spread to Europe and Asia. There was a dip in December, and a quick recovery, so lets hope for a bounce, and hope that a lot of selling was an automatic, or programmed selling response.
This sort of thing is why so often it is best to think of holding 5 or more years. After only 6 months I was well up, over £200 on a £1000, put in another £1000 last week, and am now £150 down ! on £2000. So someone with £10k + could be worried, but in a couple of years should be well up again. In this case, there was very little an ordinary investor could do to sell before the drop.
I thought the article was very informative, the sort of thing I’d like to read about more IT’s.
For example, 57% in USA, which info you can find easily, and immature co’s. But a large holding in Biotechnology, I did not know. Say, then if I was thinking of one of the specialist Health funds, I could think about any overlap in holdings.
Hoping to see more such articles on other IT’s.


#5

Is that an investment in Edinburgh Worldwide you’re describing @Kuhncha (the £2k investment)?

I agree that investments like this should be long term and too many investors are not. I try to be, but sometimes fail, miserably.

Actually this website is one of the few that doesn’t publish frequent calls to sell to avoid some correction or another.


#6

Good article @dicem - you made a good case for EWI. This has the potential to be a multi bagger over the next ten years or so.

I just checked on Morningstar and it’s swung to a 5% discount. The stock market is a bit rattled, not sure it’s going to go down further but I’m gonna watch it over the next couple of days and buy a holding when it feels right.


#7

Thanks for heads up @andre, I’ve just added EWI to my watch list too. I have some spare cash in my platform account looking for a home.


#8

I wish there were more detailed articles like this. It takes so long to look for the info. on different sites.
Because of its size and momentum, SMT has a lot of publicity. At the other end of the scale has been the Independent IT, that has not looked for too many new investors. Not all Trust managers want to grow to the size of SMT. Last year I noticed that Manchester & London and Independent had momentum. Both performed well last year, IMO because they were quite small, and invested in companies that grew well, and got publicity. Say SMT had invested in Fevertree or Blue Prism - They could double in value several times and have little effect on SMTs’ price, but did affect the price of a smaller IT.
Edinburgh IT, is well known, but not related to this Edinburgh Worldwide, but is one of the reasons I noticed EWI. I invested in several ITs last year, and wanted to put more into some of them, I should have been quicker off the mark with EWI, but added another £1000, and it looks like, at the top of the market. Had I chosen then to invest £10k or £50k, this week would be stomach churning. Because, USA excepted, due to high values, and UK due to Brexit, worldwide, companies are doing OK and making profits. I did not expect such a sudden large drop. I’ve been here before and thought I’d be ready this time, to sell out of the smaller holdings (at a comfy profit ) in the event of a downturn, keeping my long term holdings, growing steadily over time.
EWI looks to be a good long term investment, in a sector with opportunities, and management making good choices. So if I have cash available, I will continue to invest, though learning my lesson and watching the discount/premium. Whether the discount will return to - 10%+ will wait and see. (I also hold SMT) ( India Capital Growth is another IT I hold, that shot up, looking great, then turned down quickly.)


#9

I reckon this would get punnelled in a stock market crash because it will be full of jam tomorrow highly inflated expectation stocks. I’m not sure I’d want to be investing here at what might be the top of the market or near enough.

They don’t have any discount control policy and I don’t really understand if they do much to limit risk. It’s certainly too risky for me.


#10

The article points out that EWI can be expected to be volatile @jasond but the point is over the long term it should deliver rocket fuel like returns. We all know the theories about smaller companies delivering higher returns, but when markets tank so do smaller company funds and stocks.

If you can commit to investing for 5-10 years it shouldn’t matter to you if the year after next it goes down a bit as long as it goes back up again. And in any case its as hard as hard can be to attempt to sell at the right time and back at the right time. Most people, me included get that wrong. I’ve always got it wrong which is why I just don’t do it any more.

Buy good funds/trusts/companies for the right reason and hold them unless you can patently see you have got it wrong.


#11

I see Tempus in The Times has got in on the act and recommended Edinburgh Worldwide too…