Lindsell Train Global: what the hell is going on here?

eskbanker

iglad wrote: »

You did mention in your earlier post that the FTSE 100 was down over 3 1/2 months but according to the HL performance tables the FTSE was up over 3 months and 6 months. I am unable to get that 3 1/2 months and would love to know where you got it so I can take a look.

Sites like Trustnet offer flexible charting capabilities that illustrate why its performance over 3.5 months is different from 3 or 6 months, given the steep drop just over three months ago, which perhaps explains why someone might choose such an apparently unusual time period over which to measure (in order to make a valid point, to be fair)!

TBC15

Not sure if it’s relevant but is there any correlation with Nicks change of hairstyle?

bowlhead99

iglad wrote: »

You did mention in your earlier post that the FTSE 100 was down over 3 1/2 months but according to the HL performance tables the FTSE was up over 3 months and 6 months. I am unable to get that 3 1/2 months and would love to know where you got it so I can take a look.

You had said that there were "positive gains on the FTSE 'of late' ", while LTGE kept going down - without giving any time frames. You had mentioned on an earlier thread that your current portfolio set-up only dates back to March, so presumably your complaint or confusion about LT's performance doesn't go back very far, but a month or two or three or four is not very long in the grand scheme of things.

I looked at the FTSE and it was only 7360 which is about 4% lower than it had been in the last week of July (Monday 29 July was 7687). After its July high, FTSE dropped 8% over about the next 10 trading sessions, so any positive gains in the last three months are merely clawing back half the ground it had lost over that two week period. It has not exactly been a stellar performance over the last 15 weeks overall - in fact, it's been several percent negative.

You can get a simple interactive chart of the FTSE by searching for indexftse:ukx on google. If you want a total return chart to overlay against your various funds, you can do that via interactive charting on trustnet.com

As LTG has about 1/3 invested in the UK I would have expected a little bit of a bounce.

So yes It's always good to fact check.

The UK allocation of the fund was 28% at end of March and 29% in the last factsheet published end of September. But the LT fund doesn't attempt to deliver the result of the FTSE or even have 29% of its holdings deliver the result of the FTSE.

FTSE100 was up slightly less than a percent between Monday morning and Friday night. LT's biggest UK holdings in the last factsheet were Unilever, Diageo and London Stock Exchange. The latter two together account for about half the UK allocation and both were down over the course of the last week.

With a concentrated portfolio (three quarters of its UK allocation coming from just those three companies I mentioned) you shouldn't be under a misconception that it will generally track the FTSE, which contains 90+ other companies.

quirkydeptless

TBC15 wrote: »

Not sure if it’s relevant but is there any correlation with Nicks change of hairstyle?

Possibly, bad bed hair could be a signal to sell :think:

aroominyork

bowlhead99 wrote: »

LT's biggest UK holdings in the last factsheet were Unilever, Diageo and London Stock Exchange. The latter two together account for about half the UK allocation and both were down over the course of the last week.

This is why I prefer to hold LT UK Equity and LT Japanese Equity and get my US exposure elsewhere*. In a fund like LT Global Equity which is already concentrated with just 29 holdings, if you use it as a core fund for one of its four geographies (UK, Europe, US, Japan) your exposure to those countries is in a very small number of companies.

(* Admittedly partly from Fundsmith)

arwain

iglad wrote: »

I'm a bit puzzled as what is going on at LTG as despite the S&P hitting record heights and the positive gains on the FTSE of late the LTG price seems to keep falling. It seems to do the very opposite of what one expects.

All very strange is there something I'm missing? I know it has no tech stock in it's portfolio.

Enlighten me someone.

I used to have 15% gains now it's just 2.32%

Fundsmith gains are almost double but I expect it to to do well as it's got a more US focus and also has tech stocks.

Go on enlighten me, please.

Did you read this?
https://www.moneyobserver.com/news/nick-train-if-investors-want-fund-never-underperforms-they-should-sell

kinger101

You're comparing indices against a concentrated stock picker. And over a relatively short period.

bostonerimus

arwain wrote: »

Did you read this?
https://www.moneyobserver.com/news/nick-train-if-investors-want-fund-never-underperforms-they-should-sell

If someone is described as "one of the UK's most successful fund manager's" (as in the article) i'd avoid them like the plague

Moe_The_Bartender

LTGE is down 7% over the last three months. In the same time frame, the £ is up 7% against the $.

Coincidence? I think not.

The fund is still up nearly 14% over 12 months.

Chippy99

Is there much danger of LTGE "doing a Woodford"?

I've lost a shed load on the Woodford UK Equity Income Fund debacle, which whilst bloody annoying is not the end of the world since my holding is less than 1% of my broader portfolio. But LTGE represents something like 8% so is a serious chunk of cash. I absolutely would be mortified if I were to lose much of that. I'm sitting on a 75% profit at the moment.

I note that Morning Star have downgraded the fund due to liquidity concerns. Should I be considering reducing my holding or even cashing out altogether?

What do you all reckon?

Thanks