Portfolio Activity & Investments
The invasion of Ukraine by Russia has set the pace for global financial markets at a time of rising interest rates. We have responded where we felt it was appropriate, but portfolio turnover has remained modest as we feel our clients’ holdings are, to a large extent, well positioned for the current economic environment.
We have benefitted from a few takeover bids, notably Clinigen, the pharmaceutical business, and we are awaiting clarity on a bid in residential care business, Caretech, from the founders. We have benefitted from the surge in electricity price rises and increased usage of battery storage in the Gore Street Energy Storage Fund. Our holding in chemical company Elementis has been less beneficial so far, but we remain confident of our investment thesis and figures have shown continuing growth in profitability. We increased our holding in the UK’s largest defence company, BAE Systems, on the day of the invasion of Ukraine. This has aided performance. Finally, for our AIM portfolio clients we have initiated a position in Diaceutics, a company that is vital to the success of many of the new drug development breakthroughs. This is particulary important for AstraZeneca, another key client holding, who are Diaceutics largest customer.
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Clinigen
We exited our position in global pharmaceutical and services company Clinigen following a bid for the company. UK based private equity group Triton were the acquirors and increased their bid price to 925p per share in cash, up from 883p in December, in order to clinch the acquisition. Clinigen specialises in niche commercial drugs and offers services that run clinical trails, helps with distribution, and helps with areas such as packaging and medicine sourcing.
The largest shareholder in Clinigen was Elliott Associates, managed by legendary money manager Paul Singer. The fund was rumoured to be interested in taking Clinigen private itself, however they seem satisfied with the latest bid by Triton.
