Invest like a tortoise, not a hare to avoid market volatility

Hassan Raza, Portfolio Manager at CG Asset Management, highlights three favourite investment companies

Sustainable with long term investment concept
(Image credit: Getty Images)

Capital Gearing Trust is an investment company that aims to preserve wealth and protect against inflation through a portfolio of bonds, equities, and commodities. We aim to achieve this with low volatility and without losing money over a 12-month period. Since 1982, the company has delivered a 14% annualised net asset value (NAV) per share, with positive returns during the dotcom crash (2000), the global financial crisis (2008-2009), and the Covid pandemic (2020).

Our equity holdings in the investment-trust sector have been an important contributor to this performance, and the availability of opportunities in this area has improved significantly as discounts have widened. The share price of many investment trusts (ITs) can trade at a discount to NAV per share. For instance, you could buy well-known stocks like BP at 90p in the pound (a 10% discount) through some of the companies we hold. However, it is a double-edged sword, as the discount could widen further.

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
Hassan Raza
Portfolio Manager

Hassan joined CGAM in 2020. Prior to that, he worked in M&A and Leveraged Finance at HSBC. He began his career at PwC in 2013, advising on corporate finance for infrastructure projects. Hassan read Mathematics & Economics at the London School of Economics and is a CFA Charterholder.