Last week saw a boom in the shares of chip producers Nvidia and ARM. These have both powered ahead in the hope that they will benefit from the need to support AI systems and their profits have been moving upwards. Nvidia’s share price is up 35% in 2024 so far. ARM’s share price has doubled since it’s IPO last September and there is much anguish over the fact that this UK company chose to list in the USA.
As an investor in technology companies I have missed out on this bonanza as I don’t have direct holdings in either stock. But an interesting article from the AIC entitled “Which investment trusts hold Nvidia” explains how I and others could have benefited from holding technology focused funds – see https://www.theaic.co.uk/aic/news/press-releases/which-investment-trusts-hold-nvidia
For example, Polar Capital Technology (PCT) and Allianz Technology (ATT) both hold more than 7% of their funds in Nvidia and PCT is one of my biggest holdings. I also hold shares in Scottish Mortgage (SMT) and JPMorgan Global Growth & Income (JGGI) who also have substantial holdings in Nvidia so I have not missed out altogether.
Why hold funds that hold popular shares rather than the shares directly? Because keeping track of US shares is not easy and the fund managers are probably more in contact with US technology developments than I am. Also these trusts are trading at a discount to their holdings so you are getting the component shares on the cheap.
Roger Lawson (Twitter: https://twitter.com/RogerWLawson )
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