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.

Fund renews hostilities with Tiny Rowland’s old firm

Fund renews hostilities with Tiny Rowland’s old firm

Cambria Africa, a closed-ended fund listed in London and focused on Zimbabwe, is suing its former manager Lonrho for around $10 million (£5.8 million).

Lonrho, the conglomerate built by Roland ‘Tiny’ Rowland, was a major shareholder in Cambria Africa and managed the fund until February 2012.

Cambria Africa had previously settled a dispute with Lonrho over ‘alleged fraudulent misrepresentations’ in July last year for $2.7 million (£1.6 million).

The fund is now seeking to rescind that agreement, and is pursuing additional claims regarding three aircraft previously owned by Cambria which were leased to former subsidiaries of Lonrho.

Cambria stated: ‘These alleged claims include (i) fraudulent misrepresentations by Lonrho to Cambria relating to the purchase of one of the aircraft by Cambria from Lonrho; (ii) breaches of contract, negligence and breaches of fiduciary duty resulting in (a) unpaid maintenance reserve and lease charges; (b) diversion of insurance claims proceeds by Lonrho to one of its subsidiaries which were properly due to Cambria; and, (c) loss of value of the aircraft due to the poor condition of the aircraft when they were repossessed by Cambria, including, but not limited to, missing engines, missing avionics, and missing propellers.’

Lonrho was taken private in May last year, after being bought by two Swiss investors. Its current business interests include infrastructure, agriculture and hotel management.

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 Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Play Henderson's Lofthouse on merger boost and political risk

Henderson's Lofthouse on merger boost and political risk

Ben Lofthouse talks through where he is finding income and what surprises await the global economy in the new year.

Read More
Your Business: Cover Star Club

Profile: 'a lot of the hard work is done' says Charles Stanley

Profile: 'a lot of the hard work is done' says Charles Stanley

We’ve turned a corner, and there is positive momentum behind Charles Stanley says Charles Stanley's private client head

Wealth Manager on Twitter