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Stock Analysis & ValuationArtemis Alpha Trust plc (ATS.L)

Professional Stock Screener
Previous Close
£369.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)306.31-17
Intrinsic value (DCF)980.75166
Graham-Dodd Method5.88-98
Graham Formula720.8995

Strategic Investment Analysis

Company Overview

Artemis Alpha Trust plc (ATS.L) is a UK-based closed-ended equity mutual fund managed by Artemis Investment Management LLP. Established in 1931 and formerly known as Piccadilly Growth Trust plc, the fund primarily invests in growth stocks across diversified sectors in the UK public equity markets. Benchmarking its performance against the FTSE All Share Index, Artemis Alpha Trust focuses on capital appreciation through a diversified portfolio of UK equities. With a market capitalization of approximately £120.7 million, the fund is a notable player in the UK asset management sector, appealing to investors seeking exposure to UK growth stocks. The trust’s strategy emphasizes long-term value creation, leveraging Artemis Investment Management’s expertise in identifying high-potential equities. Its historical performance, sector diversification, and active management approach make it a compelling option for investors looking to capitalize on UK market opportunities.

Investment Summary

Artemis Alpha Trust plc presents an attractive investment opportunity for those seeking exposure to UK growth equities through a managed fund. The trust’s focus on diversified sectors and growth stocks aligns with long-term capital appreciation strategies. With a diluted EPS of 0.54 GBp and a dividend yield reflected by a dividend per share of 7.97 GBp, the fund offers both growth and income potential. However, investors should note the fund’s beta of 1.284, indicating higher volatility compared to the broader market. The trust’s net income of £17.68 million and revenue of £20.39 million demonstrate solid financial health, though its operating cash flow of £762,000 suggests limited liquidity. The presence of £4.75 million in total debt is a moderate risk factor. Overall, Artemis Alpha Trust is suited for risk-tolerant investors bullish on UK equities.

Competitive Analysis

Artemis Alpha Trust plc competes in the crowded UK closed-ended fund market, where differentiation hinges on performance, sector focus, and management expertise. Its competitive advantage lies in Artemis Investment Management’s proven track record in identifying growth stocks and its benchmark-beating potential. The trust’s diversified portfolio mitigates sector-specific risks, while its focus on UK equities provides localized market expertise. However, its higher beta indicates greater volatility, which may deter risk-averse investors. Compared to peers, Artemis Alpha Trust’s smaller size (~£120.7 million market cap) limits its ability to scale as effectively as larger funds, but it benefits from agility in stock selection. The trust’s historical performance and active management approach position it well against passive alternatives, though fee structures and performance consistency remain critical for investor retention. Its niche in UK growth stocks offers a unique value proposition, but competition from larger, more diversified funds poses a challenge.

Major Competitors

  • Scottish Mortgage Investment Trust plc (SMT.L): Scottish Mortgage Investment Trust is a larger competitor with a global equity focus, offering broader diversification compared to Artemis Alpha Trust’s UK-centric approach. Its massive scale (£13.5+ billion market cap) provides economies of scale but may limit agility in stock picking. Scottish Mortgage’s tech-heavy portfolio contrasts with Artemis Alpha’s diversified sectors, appealing to different investor appetites.
  • Mid Wynd International Investment Trust plc (MWY.L): Mid Wynd International invests globally with a focus on defensive growth stocks, differing from Artemis Alpha’s UK growth emphasis. Its lower volatility profile may attract more conservative investors. However, its international exposure dilutes UK market expertise, where Artemis Alpha holds an edge.
  • Athelney Trust plc (AGT.L): Athelney Trust is a smaller UK-focused fund (~£5 million market cap) investing in micro-cap and AIM-listed stocks. Its niche approach contrasts with Artemis Alpha’s broader growth stock selection. Athelney’s higher risk/reward profile appeals to speculative investors, while Artemis Alpha offers more stability.
  • JPMorgan American Investment Trust plc (JAM.L): JPMorgan American focuses exclusively on US equities, providing geographic diversification away from Artemis Alpha’s UK mandate. Its reliance on JPMorgan’s resources offers strong research backing but lacks Artemis’s UK market specialization. Performance is heavily tied to US market conditions.
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