Its plan for continuous share buy-backs would target the same 25pc of the trust’s shares as the tender offer over the next three years and would broadly aim to keep the discount below 5pc.ĭan Cartridge, who owns Alpha Artemis in the Hawksmoor Vanbrugh and Global Opportunities funds, says the narrowing of the trust’s discount has rendered the tender offer obsolete. The trust’s board has estimated that the costs of a tender offer would result in participating shareholders receiving proceeds at a 4pc to 5pc discount to NAV, close to the level at which the shares currently trade. “If there is a low take-up, the costs can be punitive – to the point that shareholders who wanted to sell might find themselves getting a better price in the market than from the tender.” “A tender offer can cost a couple of hundred thousand pounds,” says Budge. That would leave a relatively small pool of investors who would potentially sell their shares in the offer, meaning they would bear the brunt of its costs. That has helped to remove the double-digit discount: Artemis Alpha’s shares now trade 5.1pc below the value of its assets. The turnaround has accelerated over the past year, when the shares have returned 50pc. Since then, the trust has been transformed under Kartik Kumar, appointed co-manager in 2018.Ī return since then of 32pc, including dividends, is nearly three times the FTSE All-Share’s 11pc, but even this tells only part of the story. When we first tipped the trust, only one other that invested across the London stock market had delivered a lower five-year return than Artemis Alpha’s 32pc. This column is happy to report that performance has improved markedly. Either an improvement in performance would help close the gap with the trust’s net asset value, Questor reasoned, or a long-standing offer by the board to buy back shares would do the trick.

In August 2018 the shares were trading 15pc below the value of its assets but there was a clear path to that discount narrowing. When Questor first tipped shares in Artemis Alpha, the eponymous asset manager’s “best ideas” fund, it seemed a sure‑fire bet.

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