Schiehallion manager says market pull-back cause for 'optimism'

Chair warns of premium

Manager of the Schiehallion trust believes the recent fall in markets is a “cause for optimism” as the second half of last year had led to “disconcerting trends”.

Peter Singlehurst, who runs the Baillie Gifford trust, noted that at the end of 2021 there were companies that he liked on a "fundamental basis" but were attracting "unjustifiable valuations" and that made the potential upside "implausible". "Perhaps more worryingly, we also saw funding rounds happen at lightning speed, leaving insufficient time for proper analysis and forcing us to walk away from several rounds," he commented in the annual report. "Both of these trends have the potential to damage returns - not only for investors, but also for the companies themselves, as valuations ...