Biotechnology trusts BIOG and IBT replaced technology trusts as last month’s big risers with profit taking hitting Seraphim Space (SSIT) in June, but 3i Group (III) recovering after its tumble in May.

June’s top risers

Source: QuotedData 30/6/26

Biotech Growth (BIOG) led the way in June with a 20.6% surge as shares in drugs developers responded to two big premium bids in the sector and an easing in US regulatory pressure.

BIOG’s 1.5% weighting in Nuvalent paid off as shares in the US cancer therapist leaped on a $10.6bn cash bid from the UK’s GSK. 

RTW Biotech Opportunities (RTW) and International Biotechnology Trust (IBT) rallied 11.7% and 10.8%, boosted in part by Abbvie’s $10.9bn acquisition of Apogee Therapeutics.

Worldwide Healthcare (WWH), BIOG’s Orbimed stablemate, gained 10.2% as it basked in the glow of a decision by the US Food and Drug Administration to allow portfolio holding uniQure to re-apply for approval for its Huntington’s disease gene therapy with its existing three-year trial data rather than have to conduct new tests. Polar Capital Global Healthcare (PCGH) gained 8.4% to appear lower down in our table of top 15 risers.

BIOG’s rapid advance last month came as the trust’s annual results showed a stunning 73.4% investment return in the year to 31 March as its fund managers’ bets on smaller drug developers finally came good. 

Shares in the £304m trust are up 30% this year and have soared 121% in the past 12 months, making them the best performer in a peer group where the average return has been 59%. Despite the impressive recovery, BIOG’s share price still stands 8.6% below NAV in line with the average one-year discount. That may reflect lingering caution over its volatile history with the shares up just 12% over five years after a mauling in the growth crash of 2022-23.

3i Group recovers 

3i Group (III) regrouped, rising 11.6% in June as Action, the discount retailer that accounts for three quarters of its assets, reported its sales growth decline had stabilised with like-for-like sales up 3.3% from 31 March to 21 June, slightly below the 3.6% rate of the previous quarter in its full-year results when the shares plunged 19%. Shares in the £24bn private equity giant have fallen 38% in the past year, derating from a 60% premium above NAV to as low as 30% below asset value on fears about the slowdown in Action, 3i’s crown jewel that has driven the bulk of its 238% underlying investment return over five years. The discount has now narrowed to 17%.

Bluefield sold, GRID urged to sell 

Bluefield Solar Income (BSIF) leaped 16.5% after the high-yielding renewables fund accepted a £548m cash bid from biomass generator Drax, narrowing its share price discount to 14% from a one-year average of 26%.  

Gresham House Energy Storage (GRID) gained 7.2% after Ofgem said the battery fund’s Ocker Hill development project in the West Midlands would qualify for support from the energy regulator’s long duration energy storage scheme. 

More pertinent for the spike may have been the open letter on 30 June from PrimeStone Capital, an activist investor with a 7% stake, which called for an “outright sale” of the portfolio given the failure of its three-year turnaround plan to revive shares still stuck on a 21% discount, although that has halved in a 22% rally in the past three months. 

June’s biggest fallers

Seraphim Space appears to have been hit by profit taking after its extraordinary run from a 29p low two years ago. Ordinary shares (SSIT) in the world’s first listed space technology fund slumped nearly 25% last month, having started to fall at the end of May before the release of strong quarterly results, but have still ratcheted up a 596% total return over three years. Year to date, SSIT is the second best investment company, its first half advance of 57% behind only mining fund Baker Steel Resources (BSRT) which has rallied 65%.

Source: QuotedData 30/6/26

Seraphim’s step back comes after a string of good news starting with a £137m C-share raise in early May, followed by the announcement of a 30.7% rise in the portfolio in the first three months of the year largely due to the excellent performance of ICEYE, the satellite company that is its biggest holding. That preceded confirmation of its promotion to the FTSE 250 with a market value of nearly £700m, all against the supportive backdrop of SpaceX’s record $1.3trn flotation in the US. Nevertheless, the ordinary shares ended the month on a 5.7% premium above NAV.

The same does not apply to Seraphim’s new C-shares (SSIC) which fell 26.7% in the sell-off and today stand at 77.7p against a 100p issue price. They should hopefully recover as Seraphim Space Manager starts to invest the cash raised.

Elsewhere Partners Group Private Equity (PEY) fell 23%, widening its discount to 40.7%, as the investment company sought to tackle its chronically undervalued stocks with the offer of a gradual 30% exit for shareholders via a new realisation share class. However, that does not appear to have convinced the market following a the €20m write-off of its investment in Greek drug delivery provider Pharmathen. Shares in Partners Group, its Swiss private equity manager, also fell after capping withdrawals from its flagship $8.6bn Global Value open-ended fund in order to protect long-term investors from a firesale of assets.

SDCL Efficiency Income (SEIT) tumbled 20.8%, widening its discount to over 54%, after the former 18%-yielder suspended dividends as it embarked on a wind-down for which it needs shareholder approval at its general meeting on 10 July. Activist Saba Capital has a 21.6% stake.

Both Partners Group Private Equity and SDCL are among the worst performing investment companies this year with both their shares falling 30% in the first half.