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Last week, the fund was trading on a discount of 26.9 per cent to its last recorded NAV. Jerry Parkes, analyst at Knox D'Arcy, said factoring in cash content resulted in an actual discount of approximately 38 per cent.

When shares go on sale for the revamped vehicle in June, they will be issued "closer to NAV price", Mr Parkes confirmed, meaning investors who buy in now could get shares relatively cheaply.

Knox D'Arcy took over the helm of Eaglet after electing board members sympathetic to its aims in December and ousting incumbent manager Peter Webb, who helped launch the fund for Unicorn Asset Management in 1993.

When the portfolio is overhauled in June it will be run on a quantitative model based on the trades of listed companies' directors, and will select stocks on an index-unconstrained basis depending on the share purchasing movements of companies' senior management. It will hold 40-60 equities largely drawn from the small-cap space, although it will not venture into Aim and will not invest in any company with a market cap below £25m.

Mr Parkes could not confirm how much of Mr Webb's old portfolio would be turned over, but said the directors' dealing model would be a complete departure from his style of management.

He added: "We encourage current investors to stay invested when we roll over into the Directors' Dealing trust."