By rights, HG Capital Trust probably should set off a few red lights. It invests overwhelmingly in private companies, which are notoriously difficult to value and can be hard to exit, and its specialism is software and service companies, making it exposed to the frantic pace of change, and the risk of blow-ups, in the technology sector.
That this investment trust is pretty reassuring on both fronts is testament to the track record of HG Capital, its investment manager and a private equity investor that traces its roots and its name back to Mercury Asset Management but was created in 2000 via a management buyout at Merrill Lynch.
HG Capital Trust, as of late last year, is a FTSE 250 constituent with a market value