Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Miton's Jackson buys more Barclays on Bramson swoop

Miton's Jackson buys more Barclays on Bramson swoop

Miton's Andrew Jackson used Edward Bramson's swoop on Barclays as an opportunity to buy more of the bank for his UK Value Opportunities fund. 

Shares in Barclays jumped by 3.6% yesterday after it emerged that activist investor Bramson had bought a 5.16% stake in the bank through his Sherborne Investors vehicle. 

At the end of February, Barclays was a top 10 holding in Jackson's £393 million fund, accounting for 2.1%. He did not disclose how big the position was following the latest transaction, which was funded by inflows into his portfolio. 

Jackson (pictured) believes Bramson's unexpected move has increased the investment case for Barclays. 

'Barclays was already a top 10 holding [in the fund] predicated on the fact it was an out of favour company in an out of favour sector 10 years on from the financial crisis,' Jackson told Wealth Manager

'I thought the recent results were credible, although there is still lots of work to do. It is a complex business with many parts and Bramson will have an idea on how to improve these parts.'  

Barclays released its results in February, showing a 10% increase in 2017 core profit to £3.5 billion. 

However, this failed to drag Barclays back into the black with exceptional costs on the sale of its Africa division and tax changes causing a £1.9 billion loss.

Pre-tax profit was up from £3.2 billion in the prior year but remained well short of the £4.7 billion analysts had forecast. On a post-tax basis the business last year reported a £1.6 billion profit.

The bank has also promised to reinstate the dividend it cancelled two years ago.

While Bramson's recent success stories include F&C Asset Management and Electra, Barclays is by far his biggest project to date. 

Jackson does not believe the challenge to turnaround Barclays is to large for the activist.

'Yes it is unusual to see an activist investor on the shareholder register of a large UK clearing bank but I don't think Barclays is too big for Bramson to shake-up,' the fund manager said. 

'He [Bramson] has a good record of constructive engagement and I think UK companies are generally good at engaging with shareholders. 

Jackson added: 'History would suggest that this is the time to buy rather than sell Barclays at this stage of the game.' 

Jackson was appointed lead manager on UK Value Opportunities fund in May 2016 following the exit of previous managers George Godber and Georgina Hamilton

In the 12 months to the end of February he has performed well ahead of the peer group, returning 14.2% versus a sector average of 5.6%. 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Georgina Hamilton
Georgina Hamilton
4/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 46.22%
George Godber
George Godber
5/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 45.06%
Andrew Jackson
Andrew Jackson
10/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 33.32%
Citywire TV
Play Insight's Waddington reveals infrastructure plays post-Carillion

Insight's Waddington reveals infrastructure plays post-Carillion

Post-Carillion Steve Waddington is still finding attractive plays in infrastructure.

1 Comment Play Mark Stevenson: oil is the dumbest place to put your money

Mark Stevenson: oil is the dumbest place to put your money

Futurist Mark Stevenson says that investing in oil is not just a risk to the environment but also your investment.

Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter