ROCKWOOD STRATEGIC (RKW) – Investment Trusts
| Price: 277p -1.2% | NAV: 270p |
| Market Cap: £139m | Yield: 0.3% |
This specialist trust runs a concentrated, value-oriented UK strategy and is the best-performing small-cap trust over three and five years thanks to the superior stock-picking ability of manager Richard Staveley.
For the six months to the end of September, the trust generated a net asset value total return of 12.5% to 279.9p, ahead of the FTSE Small-Cap Index (12.1%) but behind the FTSE AIM All-Share return (14.8%).
Three new investments were made – in ingredients firm TREATT (TET), which almost immediately received a takeover offer; in education software and services firm TRIBAL GROUP (TRB), which have gained 53% since purchase; and another unnamed company where the trust is still building its position.
The holding in infrastructure group GALLIFORD TRY (GFRD) was sold for nearly 2.5 times the 2022 purchase price as the shares re-rated in line with the manager’s theory.
In another notable development, Rockwood itself joined the FTSE All Share and FTSE Smaller CTompanies indices.
Our view
Manager Richard Staveley continues to generate exceptional returns and investors can’t get enough – the trust has increased the number of shares in circulation by 24% and still the price trades above NAV, which is some achievement.
Most interesting is the manager’s comment that the ingredients to support a sustained recovery in UK small-caps are coming together, not least that pension fund selling ‘appears exhausted’, as of all the headwinds facing the small-cap sector that has been the hardest to counter.
Read the press release here: https://www.rockwoodstrategic.co.uk/investors/
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