A family-run investment trust to buy and lock away

Menhaden Resource Efficiency made a slow start, but progress is encouraging. Buy before the discount closes, says Max King.

Canadian Pacific goods train
More than 15% of the portfolio is in two Canadian railways
(Image credit: © Arterra Picture Library / Alamy)

Investment trusts controlled by a wealthy family have an intuitive appeal. The family will have a long history of investment success, excellent business connections and an ambition for strong returns in the good times combined with an emphasis on preserving value in difficult markets. Management that doesn’t perform will be swiftly changed and the outside investor has the comfort of knowing that if it goes wrong, his/her losses will be dwarfed by the family’s.

Against that, business and investment acumen is not hereditary – “clogs to clogs in three generations”, as the saying goes. Families can be complacent, over-confident and reluctant to change. RIT Capital has been an excellent performer but others have had long periods in the doldrums.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More
Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.