Edison Investment Research

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CVC Credit Partners European Opportunities

Remaining positive on the market

Update | Investment trusts | 14/01/2021

CVC Credit Partners European Opportunities (CCPEOL) has achieved a total NAV return of 1.9% (target 8% annual return) in the last 12 months. Its index outperformance was helped by sector rotation early in the COVID-19 crisis and by staying positive on the market. The manager sees the greatest opportunity in the upper CCC and lower B segments and in structured finance. CCPEOL remains optimistic in the credit opportunities segment, despite the market recovery. It expects 2021 will bring more leveraged…

Henderson Opportunities Trust

Enthusiastically esoteric UK equity portfolio

Review | Investment trusts | 14/01/2021

Henderson Opportunities Trust (HOT) has performed strongly since experiencing sharp NAV and share price declines in the Q120 market sell-off, powering to the top of the AIC UK All Companies sector over the past 12 months with an NAV total return of c 40% in the second half of 2020. Managers James Henderson and Laura Foll say performance has benefited from holding a number of ‘next-generation leaders’ in the UK. The portfolio is esoteric in its make-up and seeks to avoid being overly exposed…

Hepion Pharmaceuticals

First data on liver enzymes encouraging

Update | Pharmaceuticals & healthcare | 13/01/2021

Hepion has announced interim results from its ongoing Phase IIa study of CRV431 in non-alcoholic steatohepatitis (NASH). The preliminary results are from the low-dose arm of the study (75mg, n=12) and showed a 18.4% decline in alanine aminotransferase (ALT) and a 12.1% decline in aspartate aminotransferase (AST) liver biomarkers after 28 days. Although these data were underpowered for significance, this is the first indication of meaningful clinical activity in this patient group. This is the first…

Canacol Energy

Ready to exploit Colombian tightening gas market

Outlook | Oil & gas | 13/01/2021

As we look across the E&P investment universe, few companies potentially offer greater asymmetric risk/reward upside compared with Canacol. The company is playing into a tightening Colombian gas market, which should continue to support favourable pricing and longer-term growth plans. However, even with existing pipeline infrastructure and a conservative outlook on exploration and appraisal success, our 2P + risked exploration base case valuation of C$5.87/share represents 59% upside to the current…

Atlantis Japan Growth Fund

Impressive outperformance continues

Review | Investment trusts | 11/01/2021

Atlantis Japan Growth Fund (AJG) invests in a diversified portfolio of listed Japanese equities, with the aim of realising long-term capital growth. It has a bias towards growth stocks. Lead adviser Taeko Setaishi believes several trends accelerated by the coronavirus crisis and new Prime Minister Yoshihide Suga’s structural reform agenda have the potential to generate new investment opportunities and productivity gains, which will benefit companies in many sectors. AJG’s performance…

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