Investment company Marwyn Value Investors (MVI) will be targeting a reversal in fortunes in 2017 after its 2016 performance was undermined by a falling share price at investee business Zegona Communications (ZEG:AIM).
The collective has built its track record on creating stock market vehicles which go on to consolidate specific sectors and eventually get taken over themselves.
Between its inception in March 2006 and the end of December 2016 it delivered a 186.8% total return to shareholders.
However, its total return fell into negative territory last year at -6.86% against a return from the FTSE All-Share of 16.8%.
Cable and telecom investor Zegona, which Marwyn floated in March 2015, saw its shares stall in 2016 but has recovered some lost ground in the first part of 2017.
It delivered strong full year numbers on 6 April. Cash flow was up nearly 10% to €39.6m as its turnaround of Spanish telecoms business TeleCable gathered pace.
The 2016 showing was also impacted by a fall in the fair value of posh welly boots firm Le Chameau. Second-hand car auction site BCA Marketplace (BCA) was a bright spot.
Marwyn also diversified through the course of the year, launching Safe Harbour to target opportunities in business-to-business distribution and Wilmcote to seek acquisitions in the speciality chemicals space.
The plan is to boost the portfolio from its current six holdings to seven or eight over time.
