Funds Hub

Money managers under the microscope

Something mushy this way comes…

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Predictions for the next wrinkle in a positively rutted few years for markets tend to have us either skipping merrily into a bold new future or slumping into the despondency of another punishing economic winter.

Blame the journalists if you like. There are some whose blood is decidedly up when more excitable commentators offer views which send economies (and/or house prices for that matter) hurtling thrillingly to one extremity or the other.

Of course, there are a (quieter) majority in the middle who take a less enticing line.

Royal London Asset Management CIO Robert Talbut puts it nicely in an interview with our funds correspondent Claire Milhench.

Directors buy at battered RAB

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Directors’ dealings are widely seen as a sign that management are putting their money where their mouth is, so with RAB Capital’s shares just off a year low, shareholders may be encouraged by two small, recent purchases.

Director Adam Grant spent almost £12,200 on an initial holding of 92,400 shares at 13.203 pence each, while Amanda Moore, wife of non-exec Philip Moore, paid close to £5,000 for an initial stake of 38,674 shares at 12.8334 pence each.

A painful lesson in diversification

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As if RAB Special Situations’ woes weren’t enough already (investing in Northern Rock before its collapse, putting a high percentage into illiquid assets, 70 percent loss in 2008, locking up investors), the company told me yesterday of more bad news.

Explorer Falkland Oil and Gas, whose shares more than halved on July 12 when it revealed it hadn’t found any oil at the part-owned Toroa well, accounted for an amazing 24 percent of Special Situations’ portfolio before the fall (and presumably rather less now).

Morning line-up: Reds, rising suns and prudish GS

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News and views on the funds industry from Reuters and elsewhere:

RTR1SGF8Communist investors wanted – FT

SLI makes Japan debut – Reuters

No Sh**: Goldman bans potty-mouth emails – WSJ

Short the banks – Reuters

Are the replicants shining brightly? – ETF Database

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