Jason Hollands, of the fund store Bestinvest, said the trust invested in a “highly concentrated portfolio of about a dozen US companies.” The fund is managed by Pershing Square Capital Management, whose CEO is billionaire Bill Ackman.
Mr Hollands added: “The shares are trading at a very high discount which could tempt some to tip, but the portfolio’s limited nature and approach means it’s not for the faint of heart. Returns will deviate significantly from broader equity markets.”
He preferred Fidelity Special Values but said it had been “a difficult start to the year” as businesses making money in Britain were hit by growing fears of a recession.
“With much doom and gloom, this is exactly the kind of environment where a contrarian, value-oriented stock voter like Mr. Wright should find a plethora of opportunities. I would buy the trust at this price,” he added.
Mr Hollands said Scottish Mortgage is “a great option for long-term investors”, but added that “phased buying in phases could be a better approach than piling up heavily now”.
However, Brian Dennehy, of advisers Dennehy Weller & Co, said he saw “no reason” to buy the much-loved trust.
“The main theme underpinning the fund’s massive returns over the past 10 years has been very low interest rates, especially in the US. It is important not to confuse the bull market with any investment genius on the part of the responsible managers. For now, that style of investing has had its day — or its decade,” he added.
Emma Wall, of Hargreaves Lansdown, a stockbroker, said she would buy Finsbury Growth & Income at the current price.
“It’s been through a rough patch lately, but the fundamentals of the companies it owns are strong. I don’t think it’s going to have an immediate backlash, but for the long-term investor, it’s a good time to buy.”
She warned investors to buy stocks simply because they were cheap, and said purchases should only be made if they fit a strategy.
“Many people have over-invested in funds that owned high-growth stocks. But this year they have done very badly.
“Whenever you buy a new fund, it should be based not only on price, but because it complements your other investments,” she added.