Unloved alternative trusts are going cheap – should you buy?

Alternative trusts like infrastructure and real estate funds are trading at huge discounts. Investors should take advantage, says Rupert Hargreaves

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Investment trusts have several attributes that make them appealing to investors, but one of the most valuable is their closed-ended nature. Trusts are structured as companies, with a fixed number of shares in issue. Unlike open-ended funds, they don’t need to buy and sell assets due to cash flowing into and out of the fund as demand from investors changes. This means they can take a longer-term view and hold illiquid or difficult-to-sell assets.

This advantage has helped the alternatives segment of the market flourish. Alternative funds offer private investors easy access to a wide range of investments, including private equity, infrastructure, hedge funds and specialist 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.