Could Henderson’s Bennett be right again as he makes his biggest call in 6yrs


#1

Originally published at: http://whichinvestmenttrust.com/could-hendersons-bennett-be-right-again-as-he-makes-his-biggest-call-in-6yrs/

The Henderson European Focus manager has a good past record of picking up new trends in markets and developing investment themes around them. As he’s makes his latest move in to an unpopular sector, which he describes as a horrible and uncomfortable place to be, I met him to find out more. John Bennett has…


#2

He is persuasive isn’t he. I watched the video after reading the very good article I much say which investment trust. And he is very right, I am very negative on Europe I suppose as a result of the media and the Brexit debate.

All we seem to get is negative news on what is going on in Europe.

I don’t hold any European funds any more. I have global, and perhaps they hold a little bit of Europe, but to be honest I didn’t but them for that reason.

I feel like I am now wondering if I should invest in this. The performance has been good over recent years. Is anyone else an investor in this? Or prefer other trusts or funds?


#3

My Celtic supporting pal isn’t a big fan of him (he’s on Rangers Board), but he is a top class fund manager. Plain speaking too, none of that corporate speak guff. I think why this interview reads so well @hamish is because he speaks his mind. His comment about fund manager gloating about their performance when it is just their asset class is ace.

I think he’s right too on the banks and on Europe. I’m having some this in the morning. I’d just been thinking of parking this year’s ISA inc ash because everything is so expensive but I don’t think Europe is.

If he is right about European banks, the same must apply to banks in the UK surely. Tempted to buy a little holding in Barclay, I wouldn’t touch RBS yet ad Lloyd’s is a lot more expensive.


#4

In the video he states the change to value investing will benefit Japan as well as Europe which is interesting for those Japan bears.

I thought the following was telling:

“Investors are always guilty of the ‘recency’ effect, such as: – the recent 10yrs has been awful, and they remember that first, and expect it to continue. The recent 10yrs has been great for growth stocks. Going to conferences and listening to fund managers eulogising about growth stocks; they had the biggest tailwind you could imagine and they’re boasting and becoming star managers on the back of it. Come on, it wasn’t you it was your asset class”.

Wonderful stuff!


#5

Performance on HEFT is good over 1 year.

But I would still consider Jupiter European Opportunities (JEO) similar performance over 3 & 5 years
Or TR European Growth (TRG) - in the European Smaller Companies sector, but even better 1//3/5 year performance.


#6

TR European is a good fund for smaller companies in Europe, and over time a smaller companies fund should beat a larger companies fund.

Jupiter European is a good option too, though that invests in the UK too, I’ve got enough in the UK already with other managers so I prefer Henderson European Focus, though it has to be said Henderson Euro Trust looks pretty good too. At present I think the big theme Bennet talks about int eh video and in the article sounds like its got legs to me, so I’ve just put some money in to it.

I got it on less than a 1% discount. My only worry is the European elections this year and how they might effect the share price but I think I will add more to my investment if the elections push the discount out.


#7

Bennett speaks with bucket loads of conviction which is always compelling in a manger. And it is a brave call, often used term, but right in this case.

He is kind of quote a minute, but so much of what he has to say is frankly interesting.

I love this:

Europe is becoming a buying opportunity, I never bang the table for Europe, I think it’s really dull and boring for a manager to sell his region, and often disingenuous, but I’m loving the fact that Europe is disliked again

His trust is on a measly 0.4% discount right now, I do prefer my discounts larger but I reckon he will be right in banks and it’ll be profitable so I’m buying a holding, switching out of European Assets trust.