New Star’s fund of funds has invested in another New Star fund for the first time, almost doubling its size and further fuelling float speculation.The fund of funds team, led by Mark Harris, has put more than 15m into Guy de Blonay’s global financials fund, taking its assets under management to just over 36m. The financials fund has a 6.67 per cent stake in New Star stock which is likely to rise in value if the firm floats in November in line with market expectations. Since joining New Star following its purchase of the rights to manage Edinburgh’s retail funds in November 2003, Harris has been keen to preserve his fund of funds’ independence. His team believes interest rates may be peaking globally and, in this environment, financial shares offer good value, with the global financials fund well placed to gain exposure to the upside. Harris is understood to have had to explain his team’s decision to invest in-house to New Star boss John Duffield. Apart from its investment in New Star, de Blonay’s fund currently has a focus on banks with exposure to above-average growth markets such as Scandinavia and Greece. It also invests in special situations such as Banque Cantonal Vaudoise in Switzerland, which is restructuring. Harris says: “Investing in another New Star fund has involved a higher level of scru-tiny and due diligence than investing outside the comp-any. This is a very high conviction investment and I have a great deal of confidence in Guy’s ability to outperform.” Hargreaves Lansdown head of research Mark Dampier says: “If New Star floats in November, there is no doubt this will help the performance of de Blonay’s fund but bearing in mind that nobody else can buy into New Star, it would be interesting to see how well global financials would have done without these shares.”
The controversial move of the 30m Quantock UK growth fund from Matrix to Marlborough demonstrates the power wielded by managers in disputes over the control of their funds.
Hedge fund manager Man Group is to float or sell Man Financial, its brokerage arm, as a stand-alone business. The move follows the successful 1.9bn flotation of Refco, a similar US operation, last week.
There has been much debate recently surrounding Shepherds Funds. IFAs may have missed one important point – that is, to notify your PI insurers that you have clients in these funds as soon as possible. This is especially true if you are coming up to renewal. In extreme cases, failure to do so could prompt […]
Stockmarket Linked Growth Bond
Dr. Andrew Lo, Founder and Chief Investment Strategist at AlphaSimplex, says the financial market has experienced the ‘Marching Band Effect’ over the past few years, with the various elements moving to left and right together and feeling the risks as one, making the effect more dynamic.
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