The quoted portfolio and Gresham House Managed Funds* declined 4.7%, reflecting broad weakness in UK small caps, which underperformed large caps amid uncertainty surrounding the 2025 Autumn Budget. Despite this backdrop, several holdings performed strongly. Idox benefited from a recommended cash offer by Long Path Partners, while Tan Delta Systems (2023 IPO) advanced on new contract wins with Shell Marine and progress in product trials with a major global online retailer. These gains were offset by a general de-rating across the UK small-cap sector. High-quality holdings such as Cerillion, Netcall and Property Franchise Group saw valuations soften despite positive operational news flow, driven primarily by short-term macroeconomic sentiment and budget-related volatility rather than any known deterioration in the underlying company fundamentals.
