Odyssean Investment Trust (OIT)

OIT is an investment company which aims to generate capital returns by investing in a concentrated portfolio of UK companies – currently fewer than 20 – which are typically too small to be included in the FTSE 250. The company uses a ‘differentiated’, research-led approach to identify opportunities focused on four key sectors – Industrials, TMT, Healthcare and Business Services. Engagement with company managements is a key part of the approach.

In this interview, manager Stuart Widdowson tells John Hughman about the company’s value-driven approach to small cap investing; how they use a private-equity style approach to assess companies trading below intrinsic-value, and work as an ‘engaged investor’ with underperforming companies to put forward change programmes to improve returns; why they focus on certain sectors where internationally active ‘niche market leaders’ can be found; and the implications of the major discount to intrinsic value at which UK equities currently trade.