Strategic Equity Capital : SEC

Strategic Equity Capital is a London-listed investment trust which seeks to create shareholder value through constructive corporate engagement with publicly quoted companies. The investment objective of the Company is to achieve absolute returns (i.e growth in the value of investments) rather than relative returns (i.e. attempting to outperform selected indices) over a medium-term period, principally through capital growth.

We have written notes that explain how the company works in some detail:

  • Back to its roots“, published in February 2021, examined the impact of the shift to investing in smaller stocks
  • Focused on fundamentals“, published in April 2020, looked at how SEC is faring in the COVID-19 crisis and covered the managers’ move to Gresham House
  • “Discounted opportunity”, published in July 2019, looks at SEC’s jointly managed portfolio and their solid NAV that has been in line with the MSCI despite a wide discount margin
  • Confident, despite short-term setback“, published in August 2018, notes after a strong 2017, SEC was impacted by stock specific weakness but the managers have a long term vision
  • Quality small cap focus“, published in August 2017, talks about SEC’s focus on high quality small companies and long term structural areas providing management with confidence in the future
  • Business as usual“, published in March 2017, looks at the departure of Stuart Widdowson from GVQ and the impact on SEC’s investment philosophy
  • Cashing up!“, published in May 2016, notes a belief from management that they are in a late-mid stage bull market, maintaining a preference for structural growth
  • Measured expansion on strong performance“, published in March 2015, looks at how good performance among rivals and UK indices has fuelled demand for the trust
  • Different, in a good way“, published in January 2015, talks about how SEC’s investment style is similar to a private investor, making investors three times more than their rivals

You can access the manager’s website here