There are promising signs that investors are beginning to branch out from tech stocks and pandemic “winners” of 2021, Nick Train of Lindsell Train Investment Trust wrote in his monthly update to shareholders, as reported in FTAdvisors. He also pointed to four holdings whose share price jumped at the end of last year: Diageo (up 6%), Heineken (9%), London Stock Exchange Group (7%), and Mondelez (11%).
Those share prices are encouraging, Train said, and resulted in a 4.8% NAV return for his trust in December as well as an outperformance of the MSCI World Index—the firm’s benchmark—by 2.9 percentage points. Continued growth in those four companies could push their share prices even higher, Train added.
Train’s note to shareholders comes after a stretch of underperformance for the trust, FTAdvisors contends. The total return for the 2nd and 3rd quarters of last year was 5.9%—trailing behind the MSCI World Index which rose 10.2% during the same time. And in November, Lindsell Train Investment Trust’s share price total return was -11.1% as opposed to a 1.3% return of their benchmark. That culminated in a drop in the firm’s valuation as it struggled against a market fueled by tech and cyclical companies.
But Train is not surprised by this latest upswing, as investors put a bit more confidence behind the London Stock Exchange in particular, with more positive news forthcoming as a result of its acquisition of Refinitiv a year ago.