All information is at 31 December 2013 and unaudited. 
Performance at month end is calculated on a cum income basis 
                                    One    Three       One     Three 
                                Month   Months      Year     Years
Net asset value*                     4.0%    11.4%     40.8%     59.7%
Net asset value                      4.0%    11.4%     40.8%     50.2%
Share price                          8.5%    11.8%     60.7%     77.4%
Benchmark~                           2.9%     8.0%     31.2%     39.7% 
~With effect from 1 December 2013 the Numis Smaller Companies excluding AIM
(excluding investment companies) Index replaced the Numis Smaller Companies
plus AIM (excluding investment companies) Index as the Company's benchmark. 
For the three month, one year and three year periods the above indices have 
blended to reflect this. 
Sources: BlackRock and Datastream 
* Prior to dilution arising on conversion of subscription shares. 
At month end
Net asset value capital only:                337.79p
Net asset value incl. income:                342.36p
Share price:                                 314.75p
Discount to cum income NAV                      8.1%
Net yield:                                      1.1%*
Total assets:                                £256.4m**
Net market exposure as
a % of net asset value^:                      108.1%
Ordinary shares in issue:                 73,130,326*** 
*Calculated using current year interim and final dividends paid.
**Includes current year revenue and excludes the gross exposure through
contracts for difference.
***Excluding 7,400,000 shares held in treasury.
^Long positions less short positions as a percentage of net asset value. 
Sector Weightings                        % of total assets 
Industrials                                    25.6
Financials                                     20.3
Consumer Services                              19.6
Consumer Goods                                  9.7
Technology                                      7.2
Health Care                                     6.8
Basic Materials                                 6.3
Oil & Gas                                       3.1
Telecommunications                              1.5
Net current liabilities                        -0.1 
Total                                         100.0 
Market Exposure (Quarterly) 
                  28.02.13   31.05.13   31.08.13   30.11.13 
Long                    118.0%     117.3%     117.5%     118.4%
Short                    10.5%      10.2%      12.0%      11.2%
Gross exposure          128.5%     127.5%     129.5%     129.6%
Net exposure            107.5%     107.1%     105.4%     107.2% 
Ten Largest Equity Investments 
Company                                  % of total assets 
Bellway                                         2.4
Workspace Group                                 2.0
Senior                                          2.0
Xaar                                            1.9
Optimal Payments                                1.9
Howden Joinery                                  1.8
ITE Group                                       1.8
Booker Group                                    1.8
Oxford Instruments                              1.8
Polar Capital                                   1.6 
Commenting on the markets, Mike Prentis and Richard Plackett, representing the
Investment Manager noted: 
During December the Company's NAV per share rose by 4.0% on a cum income basis.
The benchmark index (now Numis Smaller Companies excluding AIM (excluding
investment companies) Index) rose by 2.9%, whilst the FTSE 100 Index rose by
1.5%; all on a cum income basis. 
The relative contributions from long only portfolio stock selection and sector
allocation were slightly positive; the CFD portfolio performed strongly making
a contribution of approximately £1.4 million.  
The largest positive contributor to stock selection was our holding in Oxford
Instruments.  Following on from better than expected interims announced in
November, Oxford Instruments reached agreement with the Board of Andor
Technologies and launched a recommended offer. 
The largest detractor from relative performance during the month was AZ
Electronic Materials, a company which is in the benchmark index but not
currently in the portfolio. We had sold our holding some months ago
following further downgrades. AZ was bid for by Merck, and the shares rose by
42% during the month. Whilst it is disappointing that we had sold out of the 
company it is good to see a return of Mergers & Acquisitions activity. 
The largest contributor to positive sector allocation was our long standing
overweight position in electronics companies. 
In the CFD portfolio strong gains on the long positions, including a position
in Oxford Instruments, offset modest losses on the short positions. 
During December, we sold the last part of our holding in Ashtead following its
promotion to the FTSE 100. We had bought the holding back in 2010 when the
share price was approximately 100p. The company has been well managed and has 
taken full advantage of improving conditions in the US market. We believe that 
it looks well set but our usual practice is to sell holdings when they get into  
the FTSE 100, as we did with our holding in Hargreaves Lansdown, for instance. 
We have used the proceeds to buy back into Brewin Dolphin and we had a good
meeting with management during the month. We have also started a position in
Xchanging, the outsourcing and technology company, again following a good
meeting with management.  
15 January 2014 
Latest information is available by typing on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).  Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement. 
-0- Jan/15/2014 16:57 GMT
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