Not just IHT money driving AIM higher – blame the big institutions!
It has been observed that valuations of some of the larger companies on AIM are starting to look a little stretched. Some are blaming the enthusiasm of Inheritance Tax planning investors for driving the valuations of certain popular stocks to unsustainable levels. Our Blog here suggests the large institutions are to blame!
A closer look at the top end of AIM reveals that the larger AIM stocks are dominated by institutional investors and not by private client managers or AIM for Inheritance Tax (‘IHT’) portfolio specialists. At the end of February 2017 the top 50 companies on AIM by market capitalisation had an aggregate value of £37.7bn, representing 43% of AIM’s overall market capitalisation. In turn, the top 10 companies dominated this sub set with an aggregate market value of £16.1bn. Top performers in 2017 from the Top 10 include: ASOS +20% Boohoo.com +24% Fevertree Drinks +30% Burford Capital +37% Hutchison China…