Should you continue to hold Smithson Investment Trust?

Smithson Investment Trust, a small- and mid-cap fund, has struggled to live up to lofty expectations, says Rupert Hargreaves.

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The initial public offering of Smithson Investment Trust (LSE: SSON) was one of the biggest launches the investment trust sector has ever seen. Backed by Terry Smith, the manager of the £22.5 billion Fundsmith Equity Fund, Smithson had no trouble raising £822 million from investors who queued up to back its small- and mid-cap investment strategy. Its assets under management have since expanded to £2.3 billion.

Smithson pursues a version of Fundsmith Equity’s quality and growth investment strategy, targeting companies that might not fit into the larger fund. The trust’s own website proclaims, “We aim to provide you with a similar investment experience to the Fundsmith Equity Fund, being a superior risk-adjusted return over the long term, but by investing in a group of global small- and mid-capitalisation listed companies.”

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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.