Caledonia Investments (LSE: CLDN), a £3.1 billion multi-asset growth and protection fund, is currently experiencing a 35% discount in its share price compared to its net asset value (NAV). This comes despite the trust achieving its performance targets over the past three, five, and ten years.
The trust's management has attempted to address the discount through measures such as a share split and stock buybacks. Since April 1, Caledonia has spent £30.6 million on share repurchases at an average discount of 37%. These buybacks have boosted NAV by 3.5p per share, but the discount persists.
Caledonia's portfolio is split into three roughly equal parts: quoted equity, private equity funds, and private capital. The private capital pool, representing 25% of NAV, includes ten UK mid-market businesses. The largest holding in this segment, and overall, is AIR-serv Europe, which has seen its value grow from £143 million to £215 million since its acquisition in 2023.
Listed equities account for 32% of NAV, comprising around 30 holdings including Philip Morris, Texas Instruments, and Microsoft. The private equity fund pool also represents 32% of NAV, with holdings in 80 funds across 45 private equity managers, primarily focused on North American mid-market buy-out deals.