- Plenty of funds in the sector look cheap, but for good reason
- This stalwart, while not perfect, has much potential
Chrysalis Investments (CHRY) has become quite the fashionable pick in 2024 after a torrid few years, with many an analyst making the case for the trust as oversold and due a recovery.
There's certainly sense enough in this. The shares have traded at a discount of more than 40 per cent to net asset value (NAV) for most of 2024, prominent holding Klarna is expected to generate some liquidity by going public in the near future and, generally speaking, the fund may already have weathered the worst of the storm in terms of interest rate rises and the value of assets getting written down. Having also survived a continuation vote and moved its investment management arrangements onto a surer footing, it has seemed obvious enough as a recovery play.