Rockwood Strategic Share Discussion Threads

[cfro] 12/9/2024 09:20

Rockwood have a position in Hostmore i believe which i should imagine must be a wipe-out for them.
I admit to not knowing all the facts around what exactly happened with the US TGI deal or whether the investment might be recoverable or not but don't suppose the RKW management team are best pleased.

Impeccable track-record here though and everyone makes the odd mistake.

[makinbuks] 04/9/2024 10:26

And a month later still able to tap another £700k, plus Harwood have bought another 1%

[makinbuks] 06/8/2024 11:11

Good to see the share issuance starting again even on the most volatile of days. Demand and confidence sky high

[makinbuks] 02/8/2024 10:02

Completely agree, Stavely has agreed to limit the fund to £250m (I think)as that is the limit for his strategy. Some way to go yet.

[eigthwonder] 31/7/2024 20:45

As they say, when the ducks are quacking, feed them. Staveley is on a roll, the shares are relatively expensive and, as a fund manager, the more money you manage the more you earn. As night follows day, a share issue is entirely logical, it's a matter of deploying the funds profitably.

[swiss paul] 31/7/2024 20:06

Any comment?
Trading Update

Publication of Prospectus

Trading Update

The Company is the No 1. performing fund over 1, 3 and 5 years across all UK Investment Company sectors, whether large, income, mid or small, as per The Association of Investment Companies. Cash has been fully deployed, including into the recent new investments Capita Plc and National World Plc. Excellent business updates have been issued by Filtronic Plc and Galliford Try Plc, whilst important business disposals have been completed at both Funding Circle Plc and James Fisher & Sons Plc.



Noel Lamb, Chairman, commented:

"In the last two years Rockwood's NAV has more than doubled and performance has been best in class. Investor demand for this differentiated strategy continues and thus we hope to continue to scale, aided by this Prospectus and deliver for our shareholders. The manager clearly sees lots of opportunity to meet our target returns and has an exciting pipeline of potential investments."

Publication of Prospectus

In accordance with the requirements of the Prospectus Regulation, the Company is prohibited from issuing more than 20 per cent. of its issued share capital during any preceding twelve-month period without the publication of a prospectus. The Company has reached this limit through its most recent tap issuance and is therefore today publishing a prospectus (the "Prospectus") in order to provide the Company the capacity to continue issuing Ordinary Shares under the Prospectus Regulation.



The maximum number of Ordinary Shares that may be issued under the Prospectus is 12,877,954 Ordinary Shares, representing 40 per cent. of the Company's issued share capital at the latest practicable date prior to its publication.

The Directors are also seeking authority, at the Annual General Meeting held today, to issue up to 6,438,976 Ordinary Shares (being an amount equal to 20 per cent. of the total issued share capital of the Company as at the date of the notice) on a non-pre-emptive basis.

The Prospectus will therefore also allow the Company to issue a further 20 per cent. of its current issued share capital (for up to a further 6,438,978 Ordinary Shares) via tap issuances subject to the Company receiving the authority to do so during the life of the Prospectus from its shareholders at a subsequent general meeting.

A copy of the Prospectus will shortly be available on the Company's website at www.rockwoodstrategic.co.uk/key-docs/and has been submitted to the National Storage Mechanism of the FCA athxxps://data.fca.org.uk/#/nsm/nationalstoragemechanism

Block Listing Application Update

Further to the announcement on 30 July 2024 stating that the Company had made an application to the Financial Conduct Authority and London Stock Exchange for the block listing of 5,614,210 million Ordinary Shares, the Company confirms that it now expects the block listing will become effective at 8.00 a.m. on 5 August 2024 at which point the Company will have capacity to issue a total of 6,438,976 Ordinary Shares under its block listing facility.

Amendment to Investment Management Agreement

The Company also announces that the Board has agreed to a minor amendment to the Investment Management Agreement between the Company and its Investment Manager, Harwood Capital LLP, (the "Agreement"), to clarify the intention regarding the calculation of the cap on the performance fee payable to the Investment Manager as the fund grows in size. The amendment is effective from today.

The Agreement currently states that if at the end of the financial period for which the Company prepares accounts the Company's net asset value ("NAV") exceeds £100 million, the performance fee, when aggregated with the annual investment management fee paid during the period to which the performance fee relates, will not exceed 3.0 per cent. of the Company's NAV. The Agreement has now been corrected to state that the £100 million NAV threshold be calculated by reference to the average NAV over the performance fee period (calculated as the average of each month end NAV) as was stated in the 2022 Prospectus, and Annual Reports for the financial years ended 2023 & 2024. A full summary of the Agreement, as amended, is included in the Prospectus.

The Investment Manager is defined as a related party of the Company under the UK Listing Rules (UKLRs). The amendment to the Agreement constitutes a 'relevant related party transaction' (as defined in the UKLRs) to which the requirements of UKLR 11.5.4 apply. Under UKLR 11.5.4, there is no requirement for shareholders to vote on the amendment to the Agreement. The Board, having been so advised by Singer Capital Markets Advisory LLP (acting in its capacity as the Company's sponsor), considers the amendment to the Agreement to be fair and reasonable as far as the Company's shareholders are concerned. In providing advice to the Directors, Singer Capital Markets Advisory LLP has taken into account the Directors' commercial assessments.

[spangle93] 28/6/2024 09:06

Investor Meet presentation of results, from Wednesday

[makinbuks] 20/6/2024 12:40

Richard Stavely presents yesterdays results in this Kepler video, well worth a watch

hxxps://www.trustintelligence.co.uk/investor/articles/news-investor-results-analysis-rockwood-strategic-retail-jun-2024

In some ways the best bits are the questions at the end. Particularly the comments on share issuance and the cap on the size of the fund at £250m

[mr roper] 24/5/2024 11:24

hxxps://citywire.com/wealth-manager/investment-trusts/sector/uk-smaller-companies/i6170?periodMonths=12

Best performing trust over 1m, 3m, 1y,2y and 3y. Pretty exceptional work.

[spangle93] 23/5/2024 18:45

Link to the article shared in post 41 (thanks)

[makinbuks] 23/5/2024 18:12

The ongoing issuance of new shares at a premium is not only good news for existing shareholders mathematically but shows that there are many more buyers out there than sellers

[makinbuks] 23/5/2024 18:11

A quote from a very positive Citywire today:

"To these, we add Rockwood Strategic which charges 1% a year and a 10% performance fee of gains over 6%, a price that would normally be worth paying to gain access to a neglected corner of the UK market. However, the shares have in the past day risen to a 10% premium to their last NAV at 17 May so best to wait for the next valuation on Monday before buying at these levels."

[makinbuks] 23/5/2024 10:00

Premium of 9% to the bid! Looks a bit extreme. No criticism, growth in NAV this year has been impressive

[mr roper] 23/5/2024 09:07

absolutely flying of late. Stellar performance

[eigthwonder] 10/5/2024 08:36

had some good winners - see FCH for example

[spangle93] 10/5/2024 08:23

Up 15% in a month

[spangle93] 10/4/2024 08:10

£100k purchase by directors & related parties
Much bigger than just using your ISA allowance.

[makinbuks] 15/3/2024 08:49

Haven't had time to add them all up but after today's £0.5m tap announcement they must have raised about £3m this year so far and yet the premium persists. This momentum is what is required for the wider small caps market. All these trusts doing buy backs is sucking cash out of the market

[makinbuks] 04/3/2024 16:10

Thought his comments on Downing were interesting but disappointing. Basically he just acknowledged common holdings but thought that as there wasn't a fire sale the process shouldn't weigh on investee share prices. No hint that he might make an offer, seemed somewhat dismissive

[spangle93] 04/3/2024 13:16

The entire issued share capital of City Pubs is now owned or controlled by Young's. The Transaction has therefore now completed.

Dealings in City Pubs Shares on AIM were suspended with effect from 7.30 a.m. today


According to RKW in a Kepler presentation today, they are already building a position in a new core company

[makinbuks] 06/12/2023 09:20

Good to see the premium rating return and new share issues tapping the market

[makinbuks] 03/11/2023 16:06

OK fully agree, not much you can do about the macro situation but we are here for long haul

[cfro] 03/11/2023 15:58

No you have taken what i have said in the wrong context. Most companies in the portfolio were "in dire need of structural turnaround" BEFORE Rockwood got involved and of course, is the main reason they did buy into them because they believe they can turn them around.

I have never doubted their capability or expertise where they are experts in their fields. They know what they are doing and as you say will have exit plans in place (or at least thought about).

It is not that i am questioning. I am merely pointing out that economic conditions and geopolitics have worsened since they became stakeholders in these companies that were not doing that great in the first place before they came along. As good as they are they dont have a magic wand and therefore what i am suggesting is the said turnarounds may take much longer or perhaps even not be possible.

That said i am sure there will be winners in the portfolio and as i said above it will just be interesting to see what transpires in the months ahead..

[makinbuks] 03/11/2023 14:24

You say "In most cases all the holdings are in dire need of structural turnaround" as if that's something unfortunate that has incurred since the holdings were acquired. Being the catalyst for and participating directly in these turnaround scenarios is exactly what this fund is all about. They are well aware too that the holdings are illiquid and are expert at figuring out the exit. A closed end trust is the ideal vehicle for this strategy. There are bound to be bumps in the road, just be patient

[cfro] 03/11/2023 10:03

I don't hold this fund but i do keep a close watchful eye on what they do. They are very shrewd operators usually..

But in all honesty the portfolio has looked in a sorry state for a good while now. All the companies are very small and illiquid so they really are stuck with them..

In most cases all the holdings are in dire need of structural turnaround which is underway in most of them however i do wonder how easy it will be to improve these companies at an operational level into what is now a very difficult economic climate.

I think in some cases they possibly see at least some of their holdings taken over but i do wonder what would happen if that scenario doesnt happen and the said turnarounds turn out to be far more difficult than first envisaged..

Will be interesting to see what transpires here in the future..