Rockwood Strategic confident despite 'doom and gloom'

(Sharecast News) - Total returns at Rockwood Strategic sparked in the first half, the investment trust said on Wednesday, despite what it called "widespread doom and gloom". Updating on trading, Rockwood said the net asset value total return performance in the six months to 30 June was 12.5%, to 279.91p.

During the time, the FTSE Small Cap (ex-ITs) had a 12.1% return, and the FTSE Aim All-Share 14.8%.

Total shareholder return was 11.5%, while the shares traded at an average premium to NAV of 1.6%.

Richard Staveley, fund manager, said: "Rockwood continues to demonstrate that among widespread doom and gloom, attractive investment returns are possible via our differentiated approach."

He noted that potential tax changes, inflation and a "disruptive" US trade policy had weighed on corporate investment and hiring decisions as well as equity markets.

But he continued: "However, our companies tend to be driven by self-help and strategic catalysts of a materiality that outweighs a soggy backdrop, Furthermore, we believe we are all at a deep discount to intrinsic value.

"We expect positive progress across the portfolio during the rest of the financial year."

Shares in Rockwood were up 1% as at 1330 BST, at 284.8p.

Rockwood invests in smaller UK public companies. During the first half it took stakes in ingredients specialist Treatt and education software provider Tribal Group, and realised its holding in Galliford Try, which generated a 48.2% internal rate of return.