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Flood of takeover bids boosts Odyssean
ODYSSEAN INVESTMENT TRUST (OIT) 162.6p
Gain to date: 66.7%
Original entry point: Buy at 97.5p, 10 September 2020
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.