Odyssean IT Predicts Increase in M&A Activity Among UK Equities
When it comes to the world of UK equities, the Odyssean investment trust has some exciting predictions. They foresee a surge in merger and acquisition activity over the next 18-24 months that could significantly impact performance. This trend is driven by overseas firms looking to capitalize on the current subdued sentiment surrounding UK equities.
Managed by Odyssean Capital, this trust focuses on a select portfolio of companies that are typically too small to make it into the FTSE 250. They carefully avoid investing in businesses where M&A activity is deemed less likely, ensuring that their investments are more likely to be sought after by alternative owners compared to the public market.
In their recently released half-year report covering the six months up to September 30th, the board highlighted the historical performance of the trust’s net asset value as a direct result of M&A activity. They noted that since 2018, there have been ten completed takeovers of portfolio companies, with the majority being executed by trade buyers, and a significant 60% of these deals executed by overseas entities.
This strategic approach could provide significant opportunities for investors looking to capitalize on M&A driving growth in the UK equities market. If you want to stay on top of the latest industry insights and exclusive content, consider joining the Investment Week membership for free to unlock more valuable information.
