Rockwood Strategic – RKW

I noticed this UK small-cap investment trust has been added since I last checked.

The trust aims to:

maximise shareholder return by investing predominantly in publicly listed UK equities capitalised under £250m at the point of investment

RKW is expensive (1%+) and charges a fee for outperformance. It’s on a 2% premium to NAV as well.

It’s also small at less than £50m and some of its underlying holdings are relatively illiquid too.

The concentrated, high-conviction portfolio is risky and focuses on nano/micro-cap stocks.

On the other hand, the management group, Harwood Capital, which also runs OIT, OIG and NAS, seems to know what it’s doing when it comes to small caps.

Christopher Mills is well regarded and this trust’s differentiated, specialist and value-orientated approach has delivered for shareholders in the relatively short time it’s been around: