Rockwood Strat. Company Research (RKW)

Rockwood Strategic’s (RKW’s) manager, Richard Staveley at Harwood Capital, is very upbeat about the trust’s prospects, noting that his degree of confidence about the future success of RKW’s largest positions is at an all-time high. His universe is UK companies with a market capitalisation predominantly below £250m at the time of investment. This is a fertile hunting ground as it is the most inefficient part of the UK market in terms of the least number of professional investors, the least research coverage and the least media attention. The manager aims to generate a 15% annual internal rate of return (IRR), over a five-year period, from a concentrated portfolio of small-cap UK stocks that are trading at a significant discount to their estimated intrinsic value.