The managers of Aim-traded investment company Gresham House Strategic (GHS:920p), a constituent of my 2016 Bargain Shares Portfolio, pulled off a masterstroke in August by selling down their stake in Aim-traded technology company IMImobile (IMO:240p), a £159m market capitalised company that helps businesses engage with their customers across mobile devices by offering smart software products.
GHS originally bought IMImobile’s shares at 155p each and the holding had done so well that it represented more than half the portfolio by value. The decision to cut the weighting to less than a quarter realised £13.8m of cash proceeds, and a £7.3m profit, representing an eye-catching internal rate of return of 28 per cent. It also meant that GHS ended the first half of its financial year to 30 September 2018 with net cash and liquid assets of £13.8m, which accounts for 30 per cent of the portfolio’s £44.9m value, before markets and, IMImobile’s share price too, took a tumble. GHS has used some of the cash to make selective acquisitions since then and currently has around £10m of firepower to invest.
Gresham House Strategic (LON:GHS) is a London Stock Exchange quoted specialist alternative asset manager offering funds, direct investment and tailored investment solutions, including co-investment, across five highly differentiated alternative investment strategies.
Incorporated in 1857, Gresham House is one of the oldest companies in London still operating today. In December 2014, a new management team set out to transform the former property focused investment trust into a specialist asset management business. The vision was to build a business whereby the Group would become an ‘asset to covet’, generating shareholder value through delivering sustainable and superior investment performance, quality service provision alongside non-financial returns. To create a culture of empowerment, in which individual flair and entrepreneurial thinking is encouraged.
