Investment trust discounts hit 2008 levels. Here’s how to profit

Investment trust discounts have risen to levels not seen since 2008, here are three trusts looking to buy to profit.

Investment trusts
(Image credit: Getty)

At MoneyWeek we’ve always believed investment trusts are one of the London market’s best-kept secrets. Trusts are closed-ended active investment funds. With a fixed number of shares in issue, trusts trade like traditional stocks and shares, but they invest like funds. 

They are essentially investment companies, and they have other unique advantages as well. They can borrow money to boost returns, usually through fixed-rate debt such as bonds and debentures, and their closed-ended nature means they’re well-suited to buying and holding illiquid assets (where the returns can be enhanced with low-cost debt). 

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.