Questor share tip: these shares are not risk-free but a lot of the potential pain is priced in
As this column (almost) proved with IP Group, until it gormlessly held on for too long, there are few better investments than those acquired from a distressed seller, simply because the vendor is desperate for cash and likely to accept almost any price.
In the case of IP Group, the seller was a renowned fund manager whose burning need for cash prompted the very hurried disposal of 142m shares, or a 13pc stake, in the intellectual property incubator.
The share price more than doubled from there, in fairly short order, and while it may be a stretch to expect such a rapid return from National Grid, it does seem to this column’s eye as if some hefty selling could present an opportunity to step in, especially if income is an investor’s primary goal.
Readers will now be more than familiar with the ructions in the pensions market, as certain providers and managers of defined benefit schemes were caught out by the sharp increase in government bond, or gilt, yields that followed Kwasi Kwarteng’s mini‑Budget of Sept 23.