Odyssean Investment Trust
Company Notes
Strong performance record from differentiated approach
Odyssean Investment Trust* invests in a concentrated portfolio of UK-listed smaller companies, which the managers believe are trading below intrinsic value and have the potential to improve through strategic or operational initiatives. The fund is managed by Stuart Widdowson and Ed Wielechowski of Odyssean Capital, who have a private equity background. They apply this experience through deep due diligence, a highly concentrated portfolio and a long-term ownership approach.
Since its inception in May 2018, the fund has generated a NAV total return of +61%, significantly outperforming the NSCI ex Investment Companies + AIM comparator index (+16%) and the UK Smaller Companies peer group (+19%). The share price total return over the period is +60%. The fund is currently trading on a 3% premium to its NAV, having traded on average discount of 0.8% since its launch, while it has assets of £152m.
At the end of February, the fund’s portfolio comprised 14 holdings, of which the top ten represented 80% of net assets. The target market cap range is between £100m and £1bn, although investments are often made at the sub-£300m level, where companies are thought to be able to generate growth and transition to a larger market cap. Indeed, since 2019 the median market cap of a new holding has been £295m. The fund’s net cash was equivalent to 12% of net assets at the end of 2021. However, a substantial part of this was deployed on market weakness earlier this year and cash stood at 4.6% at the end of February.
*Denotes a corporate broking client of Winterflood Securities
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