Questor: this trust’s discount has narrowed dramatically – here is why you should still buy


We can’t expect such gains from every one of the trust’s holdings, of course. The point is more that conservatism is built into its NAV figures, which makes the discount look narrower than perhaps it really is.

And even if the trust’s official NAV takes into account only the earnings growth of its holdings, we can expect decent gains. “Its underlying companies are delivering very strong growth in earnings per share – probably 35pc in 2021,” says Walls.

Better still, he says he expects “more profitable exits” over the next two years.

“What we like about this trust is its exposure to sectors with strong long-term growth potential, namely technology, online consumer and online education, along with a management team that’s adept at sourcing deals through a network of entrepreneur contacts and is hence able to buy businesses in a non-competitive process at attractive levels – not to mention its conservative valuations,” he says.

“We expect a strong increase in its NAV figure for the end of December when the results are released in early March.” We have made 18.8pc since our tip in October but think there is further to go. Keep buying.

Questor says: buy

Ticker: OCI

Share price at close: 426p

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