Smithson up 18% since launch

RomfordNavy

Just noticed that my investment in the Smithson fund (SSON) is up 18% since the IPO launch last October.

Question is should I bank that profit and wait for it to pull back a bit before buying in again? I find it difficult to believe that it can continue at this trajectory for the next six months but I could be wrong.

I suspect I might get some abuse from those who will remind me that this is not short-term Share Dealing and that Fund investments should be for the long-term but interested in opinions either way.

masonic

Either you'll be able to turn a profit from this plan or you won't. It is impossible for anyone to predict the outcome, although the odds are in the favour of those predicting you'll do worse than continuing to hold.

Thrugelmir

RomfordNavy wrote: »

I find it difficult to believe that it can continue at this trajectory for the next six months but I could be wrong.

I suspect I might get some abuse from those who will remind me that this is not short-term Share Dealing and that Fund investments should be for the long-term but interested in opinions either way.

Research the reason(s) behind the rise in the share price. Within the fund there's been at least one stellar performer. Though the fund does appear to be trading a premium which accounts for a few % points of gain.

bostonerimus

Sell and it will keep going up, but if you hold it's sure to go down.

AnotherJoe

If you're that good at predicting price movements you should launch your own fund

Malthusian

This is not a forum for short-term share dealing and fund investments should be for the long-term.

Well you did ask. Don't hang a lampshade if you don't want people to look at your hideous lamp.

LobsterMemory

Shouldn't the OP just base his decision on the exit criteria he would have decided upon when he made the investment?

coyrls

RomfordNavy wrote: »

I find it difficult to believe that it can continue at this trajectory for the next six months but I could be wrong.

Just about sums it up.

aroominyork

RomfordNavy wrote: »

Just noticed that my investment in the Smithson fund (SSON) is up 18% since the IPO launch last October.

Question is should I bank that profit and wait for it to pull back a bit before buying in again? I find it difficult to believe that it can continue at this trajectory for the next six months but I could be wrong.

Is another 18% rise in six months your criterion for holding or selling? If it is, you should probably sell. But given that Fundsmith's investment strategy is for slow and steady growth, isn't it more logical to be glad you bought at IPO rather than now, and decide not to touch it for a good long while (unless it turns out to be based on a flawed concept like Woodford Patient Capital or even, some might say, FEET)?

webjaved

You need to look at why you are investing and what the long term goal is. If you are going to keep dipping into the funds once they're rising then you won't have much of a profit. I'd just leave it for now unless you really desperately need to cash that profit out.

aroominyork

Also... since Smithson's launch the main Fundsmith OEIC has gone up 12% and half the difference between the two is down to the premium at which SSON is trading. So would you also cash in Fundsmith and wait for it to fall?