Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

De Blonay adds to Barclays during 'sceptical' 40 minutes

De Blonay adds to Barclays during 'sceptical' 40 minutes

Jupiter's Guy de Blonay shrewdly scooped up more shares in Barclays while cautious investors were still poring over the details of the bank's final results.

Despite posting a 26% year-on-year rise in adjusted pre-tax profit and unveiling a sweeping plan to cut costs by £1.7 billion, nervous investors initially viewed yesterday's update with 'scepticism' De Blonay pointed out.

It took roughly 40 minutes before Barclays' shares powered ahead on the detailed results statement, which de Blonay said gave faithful investors everything they had hoped for in a single day.

'I bought first thing [yesterday] morning, just before the share price made a sharp rise,' he told Wealth Manager.

'In a nutshell, everything we wanted to hear from the management has come in the one day. Even though we had heard it in bits before, it came with a tone which meant you can believe with conviction Antony Jenkins can do it,' de Blonay added.

As the largest position in his Jupiter Financial Opportunities fund, Barclays has done well for de Blonay (pictured), who bought into the bank as its shares crashed on US and UK rate rigging probes.

Barclays has also helped push the fund back into black; over three years the £465 million vehicle has returned -0.19% versus a 27% gain in the FTSE All World Financials Index and a 26% rise in the FTSE World Financials Total Return Index. 

Over one year, however, shrewd calls like buying into Barclays' dip have helped revive the fund's fortunes. The fund is up 26% over the 12 months to the end of January versus a 25% rise in the benchmark, with yesterday's 9% gain in its biggest holding still to come through in the numbers.

Looking ahead, de Blonay has set the next price threshold for Barclays at 420p.

The bank currently trades at 326p, but the manager believes it can climb higher as new chief Jenkins shows he can secure its cost cuts.

Barclays shares may even push higher still, de Blonay said, pointing out more good news on its strategic shake-up and capital position would be recognised by shareholders.

He explained: 'The next phase will be "can it deliver on cost?"  This is an important point, I think, because consensus is too low on costs and if Antony Jenkins can deliver, with the current economic environment staying the same, the company could be 20% up.

'We think the management is playing a low profile [game]. They do not want to give all the good news at once, even though we have had a lot of it already,' de Blonay added.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter