Scottish Mortgage Investment Trust has a simple philosophy: buy the companies that are at the forefront of a structural change, and you end up winning in the long run. Think electric cars, social media or cloud computing. These ideas delivered beautifully in the 2010s, when the low cost of borrowing helped support dizzying growth in its portfolio.
But the question for investors is whether the trust can repeat this stellar run. Interest rates are much higher, and growth investors have suffered. Scottish Mortgage shares languish at about half the level of its pandemic era peak and trade at a 15 per cent discount to their net asset value. This is not a good look for one of Britain’s most popular investment trusts.
Management has intervened,
