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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Our ‘buy’ call on Odyssean Investment Trust (OIT) is now 66.7% in the money, with the shares responding positively to the fund’s strong performance and a string of takeover bids.
For the uninitiated, Odyssean is a concentrated portfolio of smaller companies whose managers Stuart Widdowson and Ed Wielechowski have proven expertise in picking takeover candidates.
Results (1 June) for the year to March 2021 showed a strong 53.4% net asset value (NAV) per share increase.
Since launch (May 2018) to March 2021, Odyssean’s NAV per share has grown by 41.7%, more than double the return from the benchnark, a performance all the more impressive given it was delivered with an average net cash position in the portfolio of 25%.
This demonstrates the underlying strength of portfolio companies which are attractive to trade or private equity buyers. Takeover bids have driven a strong NAV performance since the start of the new financial year. Two recommended bids for Spire Healthcare (SPI) and Vectura (VEC) took the number of bid approaches for Odyssean’s portfolio companies to six in the last 18 months, including completed deals for Consort Medical, Huntsworth and SDL.
Elementis (ELM) has recently rebuffed a bid approach, at a value reflecting 2.5 times the cost of Odyssean’s initial investment.
SHARES SAYS: Still a buy.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.