What a six months it’s been! I can hardly believe we’re already in July after what seems like a non-stop whirlwind of events – both personal and geopolitical. We’ll start with the good news, being that in June of this year I officially became the Senior Bid Manager in my team, taking over from a good colleague who championed me relentlessly through 2024 and pushed me to keep on going even when the going was tough.
Turning to matters of investment, I am pleased to record a favourable first half, with my portfolio advancing by some 15% year-to-date as of 30 June. The Twin Petes Investing podcast continues its steady ascent; we recently recorded our 156th episode, during which Peter observed – much to my astonishment – that nearly two full years have elapsed since I was welcomed as an official co-host. Time, I am reminded, waits for no man.
My portfolio has benefitted from an absolute avalanche of takeover offers in the first half of 2025 including Warehouse REIT (LSE:WHR), Urban Logistics REIT (LSE:SHED), Kenmare Resources (LSE:KEN), Care REIT (LSE:CARE). Regrettably, the Kenmare transaction has since unravelled, but the remaining approaches appear to be progressing, not least the contest for Warehouse REIT, where rival firms now vie for its portfolio of logistics assets.
Among individual positions, Secure Trust Bank (LSE:STB) has delivered a most gratifying 145%, whilst Anglo Asian Mining (LSE:AAZ) and Concurrent Technologies (LSE:CNC), are up 59% and 43% respectively. The first two of these three (Secure Trust and Anglo Asian) were previously suffering from temporary weakness as a result of sector/company specific events and their shares have rallied strongly on returned optimism in both enterprises. Concurrent Technologies, a small electronics manufacturing business, is continuing to benefit from an incredibly strong pipeline of orders, with revenues, profit, and their share price responding accordingly.
It must be said that not all positions have fared so handsomely. Team Internet Group has endured a lamentable decline, its shares descending from an all-time high of 204p to approximately 70p, the consequence of their ill-judged acquisition of Shinez. My confidence in the management (whose fondness for “adjusted financials” inspires little reassurance), has diminished appreciably. My continued ownership is in review.
Twelve months ago, I resolved to simplify my portfolio by disposing of certain weaker holdings. This ambition has met with mixed success. I parted ways with City of London Investment Group (LSE:CLIG), achieving a small profit of 35% in a little under six years, while my REIT exposure has been partially reduced by corporate activity. Further pruning occurred in January and May, when I divested positions in S4 Capital (LSE:SFOR), NCC Group (LSE:NCC), Vodafone (LSE:VOD), and DGI9 Infrastructure (LSE:DGI9) at losses of 75%, 37%, 25%, and 86%. Such is the unavoidable tuition one pays in for the lessons of investing.
Yet, as swiftly as I have pruned, I have also replenished, acquiring shares in International Public Partnerships (LSE:INPP), Mony Group (LSE:MONY), Bioventix (LSE:BVXP), Alfa Financial Software (LSE:ALFA), and receiving an allocation in LondonMetric Property (LSE:LMP) as partial consideration for Urban Logistics REIT. In consequence, my portfolio now comprises 45 individual holdings, including four index and active funds. I remain determined to continue the work of consolidation over the second half of the year, gradually focusing my capital on those enterprises in which I have the highest conviction.
In addition, I have also elected to increase some holdings including Chesnara (LSE:CSN), Legal & General (LSE:LGEN), Gore Street Energy Storage Fund (LSE:GORE), and Polar Capital Holdings (LSE:POLR), Rio Tinto (LSE:RIO), Central Asia Metals (LSE:CAML). As a result, my top ten holdings are as follows, collectively representing nearly half the portfolio:
| Holding | Weighting |
| Cash | 11.2% |
| UBS S&P 500 | 8.7% |
| Warehouse REIT | 5.3% |
| Legal & General | 5.2% |
| Chesnara | 4.2% |
| Concurrent Technologies | 2.9% |
| Central Asia Metal | 2.8% |
| Rio Tinto | 2.7% |
| UBS MSCI Switzerland | 2.7% |
| iShares Asia Pacific Dividend ETF | 2.5% |
My international holdings now constitute approximately 35% of the total and reflect my intention to temper the inherent concentration risk of a predominantly UK portfolio. The collective performance of these overseas investments has thus far been modest, yielding an annualised return of around 3%. Predictably, my S&P 500 and Swiss exposures have outperformed, while Barings Europe has languished with an anaemic 0.5% annual return since 2021. I intend to reassess this basket over the coming year, as improved performance must be demanded if such diversification is to justify its place.
The Next Six Months
The second half of 2025, I expect my portfolio to be further simplified as the Warehouse REIT and Urban Logistics takeovers finally conclude. Abrdn European Logistics REIT (LSE:ASLI) is continuing to dispose of assets at a glacial pace and will become a gradually smaller part of my portfolio (already being my smallest holding at less than 1%). With the easy wins now disposed of (being companies that I hadn’t been all that keen on for some time), the more difficult decisions now need to be made about which businesses I really want to back in the long-term.
Companies with persistently low ROCE, ROA and ROIC will be under increased scrutiny, along with businesses operating in challenged markets or with business models I am less keen on (I seem to have a collection of small mining businesses and small technology holdings which are hardly what I would describe as “must own” opportunities, even if money can be made in them).
In addition, I will also be casting a critical eye over those companies in which I have made a good profit and which are perhaps more fairly valued than when I initially invested. It has been some time since I have had to sharpen the pencil on this consideration, being a mostly “buy and hold” investor, but it never hurts to reconsider the investment thesis and valuation of your holdings from time to time.
On the political front, the UK continues to face a front-bench disaster following 14 years of ever deepening social and economic disorder under the Conservatives. Rachel Reeves, our Chancellor, seems absolutely unable to gain the political capital to even vaguely balance the budget, Labour MPs are determined to stomach no cuts to anything, taxes are at a post-war high (and threatening to be further raised to fund international wars, spiralling benefits costs, and an avalanche of new capital expenditure to rebuild and restore our education, prison and medical estates.
Indeed, we seem entirely convinced as a country that Cuts Must Be Made, just not to us or anything we use, Taxes Must Go Up, but not for us or anyone we know, and Gilt Buyers should consider themselves lucky to lend UK PLC Money in exchange for 5% a year to fund it all. I’m not surprised that poor Mrs Reeves has the haunted look of a lady in an impossible situation.
Conclusion
As I look toward the remainder of 2025, I do so with cautious optimism, tempered by an awareness of the many crosswinds shaping global markets. Valuations in certain pockets of the market remain elevated, while others continue to languish in neglect—offering opportunities for those prepared to look beyond the moment. My intention is to press ahead with the careful pruning and refinement of my holdings, reducing complexity and deepening conviction in those enterprises I consider truly fit for long-term ownership.
I expect further capital to be deployed selectively, favouring businesses marked by sound governance, durable economics, and a measure of humility in capital allocation. I remain particularly attuned to those companies which pay one in cash while one waits—a quiet nod to the enduring virtues of patience and prudence.
If the first half of the year has reminded me of anything, it is that markets are neither fair nor predictable in the short term, but reward discipline and discernment over time. Though the pace of change in the modern world is breathless, the principles of successful investing remain timeless. One must keep a clear head, a steady hand, and a long view.
It is my continued ambition not simply to grow capital, but to do so in a manner that is measured, intentional, and worthy of the trust placed in each investment decision.
Post-Script – The Investor Summit 2025
Finally, as listeners to my podcast will know, my co-host Peter Higgins, is also launched the Investor Summit on August 13th – a packed day of investing knowledge and wisdom (and a special LIVE episode of our podcast to boot!). Early bird tickets are still available – be sure to visit www.investorsummit.co.uk and get yours now!