Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Fidelity doubles stake in embattled Quindell to 10%

Fidelity doubles stake in embattled Quindell to 10%

Fidelity Management & Research's has got behind troubled Quindell by doubling its stake in the AIM-listed insurance claims processor.  

According to a regulatory filing, the Boston-based arm of Fidelity owns 41,246,516 shares in Quindell accounting for a 10% stake. None of the firm's UK funds have a position.

Fidelity has been building its interest in the firm since April when it disclosed a significant position and is now the second biggest investor behind founder and chief executive Robert Terry.

Quindell has come under intense pressure lately after US short seller Gotham City launched a vicious attack on the firm in April.  

Its misery was compounded last month after the UK Listing Authority rejected its application for a premium quote, which acknowledges sound governance and numbers and paves the way for investment by index funds.

Terry blamed the failure to get the listing on the firm's success. 'Regrettably it is Quindell's success and change of scale of its operations during the last three years that is a core reason for the group not being deemed to be eligible for a premium listing at this time,' he told the City.

Shares in the firm have lost more than half of their value - amounting to some £2 billion - on the raft of bad news.

However, yesterday was one of its better days with shares rising by 12.33% on the Fidelity move. The rise valued Fidelity's position at around £90 million at the close of play.  

Other big investors in Quindell include M&G Investments' Tom Dobell (pictured), who owned around 7% through his Recovery fund at the start of June, according to a shareholder register seen by Wealth Manager. He acquired an initial 8% interest last November.  

At a press briefing in April, Dobell vowed to stand by Quindell and described the Gotham attack as and 'unpleasant anonymous bear raid'.

'It is obviously going through some growing pains at the moment,’ Dobell said at the time.

‘It is in transition. We are working closely with the company and its advisers. So far they are responding very well and they have a particularly hard-working, capable chief executive.’

He added: 'This business has a very interesting proposition in terms of making the industry a lot more effective for everybody.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Nick Hayes: finding good bonds in negative yield world

Nick Hayes: finding good bonds in negative yield world

Why do some bonds offer 'negative yields' and how do you avoid them? Nick Hayes of AXA Investment Managers explains.

Play Neil Gregson: gold is prettiest in ugly contest

Neil Gregson: gold is prettiest in ugly contest

The JP Morgan Natural Resource fund manager talks about the prospects for gold with plenty of uncertainty in the global economy.

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter