M&A should drive this UK small-cap fund’s re-rating

There is a glaring valuation anomaly on offer at Oryx International Growth Fund (OIG: 1,370p), a closed-end fund that holds a concentrated portfolio of around 40 UK small-cap companies.

Managed by Nick Mills of investment firm Harwood Capital Management, the £265mn investment fund has a record of delivering strong investment returns, as highlighted by a 20-fold increase in net asset value (NAV) since inception. This has been achieved by targeting special situations where Harwood can install “change makers” to turnaround underperforming companies and by providing strategic leadership and operational expertise.