The investment trust formerly known as Gresham House Strategic has successfully pulled itself back from the brink after more than 95% of shareholders backed plans to reverse an earlier decision to wind it up.
Only 4.31% of ballots were cast against the resolution.
Chairman Noel Lamb said: “The board is delighted that shareholders have overwhelmingly supported the resolution to re-start active investing in UK small companies.
“Rockwood will have a differentiated and specialist approach focused on long-term wealth creation for our shareholders. We look forward to the highly experienced team at Harwood driving the focused portfolio forward in the years ahead.“
As previously indicated, the name of the company will be changed to Rockwood Strategic.
Wrong time to ditch UK smaller companies
Speaking to Portfolio Adviser ahead of the 25 April general meeting, Harwood Capital’s Richard Staveley (pictured) was confident that Rockwood Realisation shareholders would support the move, which needed at least 50% of votes to pass.
He argued that being forced to ditch the portfolio’s remaining UK smaller company stocks at a time when the asset class is out of favour would be a mistake for shareholders. “There is absolutely no way you get back NAV, if you’re a forced seller of large stakes in small companies.”
Rockwood’s history up to this point has been complicated and somewhat messy, with the £41.4m trust the subject of a turf war between Gresham House and Harwood.
In October 2021, the board of Gresham House Strategic replaced its investment manager, Gresham House Asset Management (GHAM), with Harwood. Staveley resigned from GHAM just before it was replaced as Rockwood’s manager, only to re-emerge at Harwood.
However, before Harwood was handed the reins, GHAM, which was the trust’s largest shareholder, threw a spanner in the works by calling for its liquidation. The resolution passed overwhelmingly, with 93% of shareholders approving the wind-up, though a number abstained from the vote.
Speculation mounted in March that Harwood was working to reverse that decision after Gresham House sold its nearly 24% stake in Rockwood – in part to Harwood.
An RNS update on 7 April confirmed that Harwood, which holds 28.9% of the trust, was looking to do just that.
Staveley and Harwood Capital CEO and founder Christopher Mills, who is advising on the fund, have both sunk their own money into the investment company. Staveley has personally bought 1% of the company, while Mills’ 28.9% stake is worth £10.5m.
