Saba Capital’s holding in Herald (HRI) has strayed further above the 30% threshold it passed in July. The activist hedge fund now owns just over 31% of Katie Potts’ £1.2bn global technology trust resulting from its unsuccessful attempt to oust the board at the start of the year. The increase from just over 30% is the result of share buybacks by the board and not as a result of share purchases by Saba so will not require Boaz Weinstein’s firm to make a bid. Herald stands on a 10% discount to net asset value.
Strategic Equity Capital (SEC) yesterday secured shareholder approval to make share purchases to enable the 100% tender offer announced last month to proceed. Almost 99.9% of shareholder votes backed the authorisation at a general meeting, 59.2% of all shares.
River UK Micro Cap Limited (RMMC) smashed its benchmark in the year to 30 September with a 22.3% underlying investment return that beat the 14.1% of the Numis Small Cap inc AIM index excluding investment trusts. Key stocks included Serabi Gold, which soared 265%, DF Capital, up 80%, and ActiveOps, which rose 51%. Several holdings, including Aquis, Renold, Science in Sport, and Windward, were acquired at significant premiums, it said in a full-year trading statement on Monday. Portfolio manager George Ensor added five new positions in the year, including Dialight, Microlise, and Sylvania Platinum, which gained an average 24%. With the shares trading at a 17% discount to net asset value of 248.9p, the company reaffirmed its commitment to returning capital to shareholders. In August it said it would offer shareholders a 100% exit opportunity in 2028 if it had not returned at least £10m through its annual compulsory share purchases.
Ruffer Investment Company (RICA) made a 2% return in September with shares in the £875m defensive multi-asset fund gaining 3% last month. It continued to take profits in gold miners, reducing them to 5% from their recent 10% peak, as bullion rallied 12% to new record highs in response to fears over the US Federal Reserve’s independence and geopolitical risks. The managers also continued to take profits in equities which, excluding gold miners, make up a quarter of the portfolio, responding to the Fed’s quarter percentage point interest rate cut that signalled a shift in attention from inflation to the slowing economy. “At a very rich multiple of 23 times the next 12 months’ prospective earnings, S&P 500 stocks are implicitly dismissing job jitters,” the managers said. Derivative protections were also strengthened, they added. The shares ended September on a 3.7% discount to net asset value after the board bought back over 5.4m shares in the third quarter in an effort to move them closer to “par”. So far this year the board has bought back £100.9m shares, or 11% of the total.
Ashoka India Equity (AIE) has declared its first dividend in seven years, proposing a 0.5p per share payment next month to ensure compliance with investment trust rules. It also proposed lifting the cap on its unquoted holdings from 12% to 15%. This follows a flat year to 30 June with a -0.2% total return though annual results showed this beat the 6.6% drop in the MSCI India index.
Finsbury Growth & Income (FGT) has called a general meeting on 11 November for shareholder approval to renew the company’s share buy-back authority which is set to hit its 15% cap after £161.2m of share buybacks since the AGM in January. The board targets a 5% discount with its share purchases. Shares in the £1.1bn UK equity income trust managed by Nick Train stand 6.8% below net asset value.
Marwyn Value Investors (MVI) says its Marwyn Acquisition Company III is in talks to buy Palmer Street Limited, a technology-led private capital administration firm, with plans for MAC III to support Palmer’s expansion and further development of its platform. Trading in MAC III’s shares has been suspended while talks continue. If completed, the company is expected to adopt the Palmer brand. Palmer’s management team: Martin Schnaier, James Ireland, James Bermingham, Jason Bingham and Phil Godley all previously worked in senior leadership roles at FTSE 250 company, Sanne Group, that was taken private in 2022 by Apex Group for £1.5bn. The deal remains subject to regulatory approvals and is not anticipated to complete before 2026.
Value and Indexed Property Income (VIP), the £86m long lease fund managed by Matthew Oakeshott and Louise Cleary at OLIM Property, generated a total underlyng investment return of 2.5% in the half year to 30 September. An income return of 3.2% was offset by a 0.7% capital decline. Hotels and its garden centre rose in value with bowling, industrials, supermarkets and the health club stable. The values of its pubs and caravan park fell as CBRE, which replaced Savills as independent valuer, took a more cautious approach. At 30 September the portfolio totalled £132.3m on a net initial yield of 6.5%. This compares with Savills’ £146m valuation at a 6.3% yield on 31 March, which was before the sale of four properties that leave VIP with 26 holdings. Half-year results will be published in mid-November.
Schroder European Real Estate (SERE) saw its property portfolio valuation rise by a marginal 0.1% in the third quarter to €194m (£166.6m). Growth in the three months to 30 September was supported by the Berlin DIY asset, which rose €400,000 (£340,000) after rent-free periods ended under a new 12-year lease. Industrial assets in the Netherlands and France also performed well, with valuation gains in Houten and Venray offsetting minor declines in Nantes and Alkmaar. However, the alternative portfolio fell 0.9%, mainly due to a 2.5% drop in the Apeldoorn mixed-use data centre valuation, partly balanced by a 1.7% rise in the Cannes car showroom valuation. According to AIC data, the £85m real estate investment trust stands on a 35% discount below net asset value.
Geiger Counter (GCL) reveals that it bought back 920,000 shares on Tuesday at 62.89p taking the £71m uranium fund’s total share repurchases in the past two months to 3.03m. It now has 152.6m shares in issue, 40.6m held in treasury and 112m with voting rights. The shares have rallied 36% in the past year as uranium prices have spiked and stand on an 8.7% discount.
Patria Private Equity Trust (PPET) says non-executive director Duncan Budge will become chair following the annual general meeting next March. Budge, who joined in February, will take over from Alan Devine, who will retire after 11 years on the board.
TwentyFour Income Fund (TFIF), the £890m debt fund investing in higher yielding asset-backed securities, declares a 2p quarterly dividend to be paid on 3 November. The company is in the middle of a two-week fund raise.
