Vantage: The importance of an exit hypothesis with Richard Staveley of Rockwood Strategic

Richard Staveley has had an eventful 12 months, winning Fund Manager of the Year at the 2022 PLC Awards and ringing the bell at the London Stock Exchange as Rockwood Strategic, the investment trust he manages, moved up to the Premium Segment. In this interview, he reflects on his career journey, which includes working with Nicola Horlick and Hugh Sergeant, and touches on the importance of having a supportive network of friends and family plus some luck as he transitioned to manage Rockwood. We’ve always enjoyed Richard’s views on the economy, and he outlines the balancing act of tackling inflation, which affects almost everyone, and rising rates, which affect a smaller group, and concludes that we have to take the pain of rising rates. With this backdrop, we learn about his approach to finding 15% IRR businesses, where share prices can double over five years, and the things he looks for, most notably a catalyst for change and, in today’s market structure, an exit hypothesis. At Rockwood, he benefits from a network that allows him to validate investment views and valuation, particularly the private equity funds that Harwood Capital runs. We learn about his investment advisory group and how it differs from other funds.