March 23rd | Rob St George

“It’s interesting to see Gabelli Value Plus (GVP) attracting investors as a possible way to beat the mighty but pricey US stock market. In our first feature Robert St George explains how Gabelli offers something different, looking at US companies in a way a private equity or industrial buyer would.”
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“Professional buyers highlight one in particular: ‘Though not yet large and liquid enough for recommendation across a group of our size, I am impressed by the Gabelli Value Plus Trust,’ said John Newlands, head of investment companies research at wealth manager Brewin Dolphin. ‘This £137 million fund is now two years old and its net asset value per share exceeds 135 pence per share, having been launched at 100 pence less launch costs. It’s very difficult to beat the market efficiency that generally prevails across the pond, which causes me to suggest that a quasi-private equity approach, engaging with companies and managements as Marc Gabelli and his team does, is a good way to go.’

Todd also mentioned the fund. ‘Gabelli Value Plus could benefit well from a continued rally in small and mid-caps as well as benefiting from the recent style rotation continuing,’ he remarked. ‘It has circa two-thirds of its portfolio in small and mid-cap names and it incorporates a value philosophy, prepared to invest in more cyclical parts of the market where it sees justification. The team is well resourced with a strong long-term track record in all-cap value investing in the US.’

More broadly Mona Shah, head of collective investment research at wealth manager Rathbone Brothers, emphasised the need for high-conviction managers in the US. ‘When selecting investment trusts, we look for very index-agnostic managers who are willing to invest for the long term and take punchy bets, as the US is a very efficient market, so a high active share is needed to outperform,’ Shah stated.”