TMT Investments (TMT:318¢), a venture capital company that invests in high-growth, internet-based companies across a variety of sectors – and with a significant number of Silicon Valley investments in its portfolio – was the star of my 2019 Bargain Share Portfolio after I advised banking a 140 per cent gain, at 580¢, last autumn (‘Takeovers, tenders and taking profits’, 9 September 2019). That proved the right call and I have been patiently waiting to buy in again.
Following an informative call with TMT director Alexander Selegenev, who is responsible for leading the business and the executive management team, I am in no doubt that the investment risk is skewed to the upside for a company that has increased net asset value per share (including dividends) by almost 300 per cent since December 2011.
With only a few exceptions, TMT’s portfolio of more than 35 companies (worth US$91m) have performed well through the Covid-19 pandemic. Indeed, Mr Selegenev expects to report positive news on multiple investee companies, almost all of which are focused around big data/cloud, e-commerce, marketplaces and SaaS (software-as-a-service) solutions.