Last year was one in 20, reckons Spencer Adair, manager of Monks, a time to cut holdings in winning stocks as valuations became stretched too highly. “I should have been more aggressive in trimming those,” he said.
A bias towards companies priced for high future earnings growth means Monks Investment Trust, the little brother of Scottish Mortgage, the former Baillie Gifford investment trust star, has been dealt a particularly bloody blow by rising inflation and the prospect of more aggressive interest rate rises. Over the 12 months to the end of April, the FTSE 250 constituent recorded a negative net asset value total return of 18.9 per cent versus a positive 6.1 per cent return for the FTSE World Index.
Growth-bias aside, two more factors
