Gresham House Strategic plc is an independent, AIM quoted Investment Company in which Gresham House Plc has over a 22% interest. It invests primarily in UK and European smaller public companies, applying private equity style techniques and due diligence alongside a value investment philosophy to construct a focused portfolio expected to be comprised of 10-15 companies.

The investment manager aims for a considerably higher level of engagement with investee company stakeholders, including; management, shareholders, customers, suppliers and competitors, in order to exploit market inefficiencies and support a clear equity value creation plan, targeting above market returns over the long-term.

Investment Approach

Gresham House Strategic plc invests primarily in UK and European smaller public companies, applying private equity style techniques and thorough due diligence alongside a long-term investment philosophy to construct a focused portfolio the majority of which is expected to be comprised of 10-15 companies.

The investment manager aims for a considerably higher level of engagement with investee company stakeholders, including; management, shareholders, customers, suppliers and competitors, in order to exploit market inefficiencies and support a clear equity value creation plan, targeting above market returns over the long-term.

The Investment Process

The strategic public equity investment strategy targets superior long-term investment returns by applying a private equity approach and techniques to investing in quoted companies. Strategic Public Equity is based on an approach which significantly reduces company specific risk within a focused portfolio by adopting a value investment philosophy and private equity-style techniques and due diligence, including an investment committee that draws on the expertise of a distinguished and experienced advisory group with industrial and private equity backgrounds.

We seek to provide growth and acquisition capital alongside significant block stake investments primarily in smaller public companies.

The private equity techniques applied to investing in public companies ensure a rigorous and deep understanding of each investment. This sits alongside an approach of considerably higher levels of engagement with stakeholders (management, shareholders, advisers, customers, competitors) and influence in support of a clear equity value creation plan which results in a de-risking of investment. This approach invests with a 3-5 year horizon and whilst short-term volatility exists, the risk to permanent capital should be reduced due to several factors:

  • Investment philosophy (value-bias)
  • Private equity style, diligence process
  • Significant and constructive engagement with management and influence
  • A clear equity value creation plan and identified catalysts.

Qualitative assessment matrix

The Investment Team applies a qualitative assessment matrix (quality-score) to all investment opportunities looking at:

  • Market characteristics and dynamics
  • Positioning within the market, ability to grow and the quality of those prospects, pricing power, client/customer quality, extent of differentiation and competitive advantage
  • The strength, quality, experience and alignment of management
  • Financials, focusing on issues such as customer concentration, sustainability of margins, capital intensity and cashflow characteristics, stability and predictability
  • M&A dynamics and attractiveness of the company to larger trade buyers and private equity
  • Our ability to acquire a stake and assist in value creation and enhancements

 

Please note that any returns are not guaranteed and capital is at risk. Please refer to the risk section for further information.

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Portfolio - Top 10 Investments

Top 10 holdings as of 30 November 2018 month end NAV announcement, using bid-price data.

All data has been rounded to 1 decimal place.

How to invest

Gresham House Strategic Plc (GHS) is an investment company, quoted on the AIM market on the London Stock Exchange (LSE). Its shares are freely tradable on the LSE, please contact your broker to invest in the fund.

Contact us

To discuss the Strategic Public Equity strategy further with us, please contact one of our investment team members below or get in contact with us using the form at the bottom of this web page.

Graham Bird, Fund Manager           g.bird@greshamhouse.com

Sally Savery, Marketing Manager    s.savery@greshamhouse.com

Registrars and transfer office

Link Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU

Tel: 0871 664 0300*
Overseas Tel: +44 (0)20 8639 3399
Fax: +44 (0)20 7935 3737

Email: shareholderenquiries@linkgroup.co.uk
www.linkassetservices.com

* Calls to this number are charged at 10p per minute plus your normal network charges.

Company Secretary

Augentius Corporate Services Limited
2 London Bridge
London
SE 1 9RA

Team

Gresham House Strategic Plc Board of Directors

Investment Team

Investment Committee

Advisory Group