Star stockpicker Lindsell kicks off buyback to prop up flagging trust

Michael Lindsell, co-manager of Britain's renowned Lindsell Train Investment Trust, has invested nearly £150,000 of his own money in the trust's shares as part of a buyback program to improve its valuation and demonstrate confidence in his investment approach, according to a stock exchange filing. Lindsell, who co-manages the £115 million fund with star stockpicker Nick Train, purchased 25,000 shares at an average price of 580p on Monday.

The £144,940 buyback forms part of a tender offer announced by the trust on Friday, in which the board offered investors the chance to sell their shares at a valuation above the market price. The trust acknowledged that the past five years of performance had been "disappointing" and conceded that its net asset value had dropped by 7.1% annually.

Despite this, the board maintains its confidence in the investment strategy and quality of the portfolio. Lindsell Train struggles to revive the fund, which has seen its shares trade at a 17.7% discount to its NAV and declined over 60% in the past five years. The buyback is aimed at narrowing the discount and giving the investment manager's strategy time to deliver improved performance.

The board's decision also ensures that the company's relative holding of the trust remains stable. Lindsell's personal investment complements a previous £200,000 purchase in the trust's Finsbury Growth and Income fund, demonstrating his confidence in the company's future and commitment to transparency with shareholders.