The John Baron Portfolios: Augmentum is the Trust of the Moment
“The company announced last month its full-year results to 31 March 2022. This was a very encouraging set of results which the market rewarded. AUGM invests in fast growing fintech businesses that are disrupting the banking, insurance, asset management and wider financial services sectors. The company continues to believe its market is worth over $4 trillion and one where the penetration by the sort of digital disruptors in which it invests remains small. Many of the established financial systems remain essentially the same as they did a decade ago, and yet the advance of technology suggests the scale of change will be significant in the years to come.
The very nature of the fintech sector is high risk/reward and there will be businesses which ultimately fail. However, the management team has exhibited excellent stewardship of shareholder funds since the company came to market. The portfolio is characterised by businesses with high growth rates while the team closely monitors cash burn and reserves to ensure it can support any future investments. Having recently added to existing positions in the Summer and Thematic portfolios at a price of £0.91, we consider the company remains an attractive proposition given the extent of discount relative to prospects”, says John Baron in the latest Trust of the Moment piece.
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