20th Nov 2015 08:40
LONDON (Alliance News) - Oryx International Growth Fund on Friday reported growth in net asset value in the first half of its financial year, way ahead of its benchmarks, benefiting from good performances from a number of its larger holdings.
Oryx, which invests in small and mid-sized companies, said its net asset value rose by 15% in the six months to September 30, beating its benchmark the AIM Index which reported a 1.3% rise and the FTSE Small Cap Index which posted a 2.5% decline.
The company said growth was materially assisted by good performances from a number of the larger holdings in the fund. Gleeson (MJ) Group PLC rose 18% following better-than-expected results, while Source BioScience PLC increased 31% after a successful acquisition. Innovation Group PLC and Synergy Health PLC both rose nearly 40% as a result of takeover bids.
Meanwhile, Bioquell PLC also performed strongly following the sale of a major part of its business, as did OMG PLC after the sale of its defence division and significant return of cash, and Journey Group PLC benefited from a significant new contract win with Federal Express.
Goals Soccer Centres PLC, however, was the only major disappointment according to Oryx, which fell following disappointing trading figures.
"Smaller companies have had a difficult period over the past few months, particularly in sectors exposed to energy and raw material prices. Liquidity in the sector continues to worsen as larger fund managers reduce exposure to small companies and substantial unit trust redemptions," Oryx said in a statement.
"However, your managers believe that this environment is favourable for investment companies such as Oryx which benefit from a stable capital base and can therefore acquire stakes in good businesses which it is believed will create good investment returns over the medium term. The company is well placed to take advantage of such situations having substantial cash balances which will increase further when the proceeds from real takeovers are received," it added.
Shares in Oryx were trading down 0.1% at 647.00 pence early Friday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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