The Worst-Performing Investment Trusts in February 2026

Why It Matters

The widening discounts signal heightened investor skepticism toward private‑equity trusts, potentially reshaping capital flows and valuation benchmarks in the UK trust market.

Key Takeaways

• Private‑equity trusts made up six of ten worst performers
• Chrysalis Investments fell 12.86% share price, 44.67% discount
• Scottish Mortgage down 1.43% despite 15% SpaceX exposure
• HgCapital share dropped 11.95% while NAV rose 2.17%
• Discounts widened across trusts, signaling investor pessimism

Pulse Analysis

February’s performance snapshot underscores a broader stress test for UK investment trusts, especially those anchored in private‑equity. Morningstar data show that six of the ten poorest‑performing trusts were private‑equity focused, with Chrysalis Investments, HgCapital Trust, and CT Private Equity each shedding double‑digit percentages on a share‑price basis. Even the sector’s heavyweight, Scottish Mortgage, slipped modestly but still ranked as the worst‑performing Medalist‑rated trust, highlighting that exposure to high‑growth themes like SpaceX does not immunise against market‑wide sell‑offs.

A striking feature of the month’s results is the expansion of discounts to net asset value (NAV). Chrysalis traded at a 44.67% discount, while HgCapital and CT Private Equity sat near 29% and 26% respectively. Such gaps suggest investors are demanding a premium for perceived risk, forcing managers to confront valuation pressures. The divergence between share‑price returns and NAV returns also complicates performance attribution, as trusts like HgCapital posted a rising NAV despite falling share prices, indicating that underlying assets remain resilient even as market sentiment turns sour.

Looking ahead, the interplay between sector‑specific catalysts and broader market dynamics will shape trust performance. Scottish Mortgage’s 15% stake in SpaceX, a company valued between $1.1 trillion and $1.7 trillion and slated for a 2026 IPO, could become a pivotal growth driver if the launch materialises, but the current discount reflects short‑term risk aversion. Investors should monitor discount trends, NAV growth, and exposure to high‑beta assets when assessing entry points, as the February downturn may present opportunistic valuations for disciplined, long‑term capital allocators.