Should I reduce my holding in FEVR (Fever Tree)?

twotonealex

Morning all,

Link to my pension post for relevance: HERE

Basically, my pot to bridge the 10 year gap from early retirement @ 55 to the age I can draw my Alpha pension at 65 will be done via my SIPP & other methods such as BTL/ISA/LISA/Savings.

I've got a modest amount of £5700 that has grown well as shown below in the last year. I am looking to put some of the below money into larger more broad global fund or another fund choice.

FUND VALUE GROWTH PERIOD
FEVER TREE £2,225.18 102.87% 15 months
L&G Global Tech Index £341.89 18.13% 3 months
Axa Fram. Tech Fund £339.54 17.31% 3 months
Fidelity Global Tech Fund £337.13 16.48% 3 months
L&G Health & Pharma. £326.34 8.78% 3 months
L&G Japan Index £299.86 3.60% 3 months
L&G Asian Income Trust £297.16 2.67% 3 months
HSBC FTSE World Index £307.99 2.66% 3 months
L&G Emerg. Markets Ind. £292.20 0.96% 3 months
Architas Birthstar 2046-50 £945.82 0.62% 1 week
TOTAL VALUE £5,778.45 (31.72% GROWTH)

Basically, I've had good growth since managing my own portfolio, I've diversified more than when I started, however I still feel like I'm open to too much risk.

The Tech funds have similar top 10s but each of them have larger % investments with different companies to each other too, so that's the reason I have kept all 3.

I am concerned regarding FEVR (Fever Tree), the growth has been fantastic, and is showing no signs of slowing down, especially with them now looking to dominate the US market. However, I am mindful of whether I should 'skim off the fat' and invest it in another fund, leaving my original investment amount in there or just ride it out for longer.

Should I reduce my holding and invest the growth elsewhere?

Thanks!

Linton

£5700 is trivial compared to the money required to fund your retirement gap. So I suggest you focus on expanding the non-Fevertree funds rather than worry about £2K. Investing in indvidual shares isnt really a viable tactic unless you have say £50K or more. Even then it could well be more effort than it is worth. The problem is the risk of a company failing, so you need to hold a large number of different shares.



At some stage you should review your portfolio as you are heavily invested in a small number of high risk areas, ones that could easily fall 50% or more in the bad times.

twotonealex

Thanks Linton.

I realise £5700 won't mean anything when it comes to funding the gap.
I'm 27, and am looking at options other than a SIPP, eg. BTL, ISA/LISA/SSISA. In addition my funding of this has been minimal since I opened it a year ago, however that will be increased.

As you agreed, my portfolio is quite high risk, and I appreciate the sums of money are small, but I'm looking to diversify. This is the reason I only have one individual share investment. I'll continue to broaden these.

Thanks!

Alexland

twotonealex wrote: »

As you agreed, my portfolio is quite high risk, and I appreciate the sums of money are small, but I'm looking to diversify. This is the reason I only have one individual share investment. I'll continue to broaden these.

I think you would be better doing the opposite and just sticking to funds as you don't have anywhere near enough money to hold a diversified balanced pool of shares without incurring a high proportion of trading fees. Lucky share picking performance is unlikely to be sustained for the majority of DIY investors. So either you are a very special rare person or you haven't realised that yet.

If your platform doesn't charge for fund trades then I don't see the harm in holding individual trackers to give you some enjoyable administration but it would be easier and probably deliver similar long term results to just hold a good global equity fund.

Alex.

Masomnia

I'm in a similar situation to you.

I own the odd single share but I see it as more of a hobby than a long term strategy. I've got some funds/a pension as well.

What I'd do in that situation is sell half, and then look for something else to invest the £1k in.

Good luck anyway!

twotonealex

Alexland wrote: »

I think you would be better doing the opposite and just sticking to funds as you don't have anywhere near enough money to hold a diversified balanced pool of shares without incurring a high proportion of trading fees. Lucky share picking performance is unlikely to be sustained for the majority of DIY investors. So either you are a very special rare person or you haven't realised that yet.

If your platform doesn't charge for fund trades then I don't see the harm in holding individual trackers to give you some enjoyable administration but it would be easier and probably deliver similar long term results to just hold a good global equity fund.

Alex.

Afternoon Alex,

I fear my wording may have confused the situation!
I only hold one share holding and have no desire to hold a pool of different shares!

What I have been considering is consolidating others into a global equity fund.
I just wasn't sure whether it was worth skimming fever tree too when I sell other funds to consolidate?

Thanks!

ColdIron

If it were me I'd sell the lot, including Fevertree, and buy a multi-asset or global equity fund. A bespoke portfolio for 5 or 6 thousand makes little sense and this looks more like like a random collection with no structure

kidmugsy

Here's what my crystal ball says:

The company is entering the US market. UK companies usually flounder there. They probably don't yet realise that Americans prefer sweet gloop to anything adult. Sell, sell, sell!

Alexland

twotonealex wrote: »

I just wasn't sure whether it was worth skimming fever tree too when I sell other funds to consolidate?

I am not aware of any portfolio theory that suggests you should hold an assortment of funds plus a share in a drinks company.

Alex

Voyager2002

Standard advice: when something has done as well as that, sell half your holding and put the money in the more sensible parts of your portfolio. In this case: unless your platform gives you a certain number of free deals each quarter, your holding is so small that the expected benefit from this is not enough to justify the dealing costs.

DairyQueen

Crazy to hold so many funds with such a small amount invested. You are young. Time is on your side. Sell your mish-mash of funds and invest in a single, low-cost global tracker: Vanguard, Blackrock, etc. If your appetite for risk is high then select 100% equity.

Plenty of people hold six-figure portfolios in a couple of global passives. They will capture the upside of the market at low cost, and with minimum effort, over your decades-long investment timescale.

What's not to like?