London-listed technology trusts faced another substantial sell-off on Friday, attributed to the departure of Nvidia CEO Jensen Huang. Nvidia's shares opened 2.3 per cent lower on Friday, following a 14.3 per cent drop on Thursday after news of Huang's resignation after 33 years.
This turmoil has significantly impacted investment trusts with major holdings in Nvidia. Manchester & London Investment Trust, where Nvidia, Micron, and Broadcom account for approximately a third of its portfolio, has seen its value decrease by nearly a fifth over the past month. On Friday, Manchester & London's daily losses extended to 1.5 per cent.
Allianz Technology Trust, with Nvidia as its largest holding, experienced a 13.2 per cent tumble in its share price. Polar Capital Technology Trust, also heavily invested in Nvidia, lost 13.3 per cent. Both trusts saw further daily losses on Friday, with Allianz shedding 1.2 per cent and Polar Capital plunging 1.5 per cent.
These trusts are highly concentrated in the US market, with Manchester & London having 92.6 per cent of its equity exposure in North America, making them vulnerable to recent sector sell-offs. In contrast, trusts with minimal exposure to US-listed tech, such as Finsbury Growth & Income Trust and Onward Opportunities, have seen their share prices rise by 3.1 per cent and 1.9 per cent respectively over the last week.