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Nigel Thomas & Giles Hargreave increase SJP stakes
Markets
by Dylan Lobo, Sarah Miloudi on Mar 12, 2013 at 15:09
Star managers Nigel Thomas and Giles Hargreave have increased their stakes in St James's Place.
The news comes after it emerged Lloyds raised £520 million from the sale of a 20% stake in its UK wealth subsidiary, leaving the bank retaining a 40% interest.
Citywire AAA-rated Hargreave (pictured left), who owns SJP through his Citywire Selection Marlborough Special Situations fund, told Wealth Manager: 'We have added to our existing position in St James’s Place through the placing.
'They are one of the beneficiaries of the retail distribution review (RDR). They are generating a lot of extra business because of it and we like their business model.’
Meanwhile, AA-rated Thomas (right) increased his position through his AXA Framlington UK Select Opportunities fund, a Citywire Selection pick, although he would not disclose whether the transaction took place before or after Lloyds placed the tranche of shares on the market yesterday afternoon.
In an interview with Wealth Manager last November, Thomas indicated he would consider increasing his stake in SJP - which at the time stood at 7.5 million shares or 0.89% - if Lloyds sold its interest.
'If SJP is spun off we would increase our allocation to the stock as long as the price is right. I bought SJP post-credit crunch, around two years ago, on the basis I would be able to increase my position if Lloyds were to sell the holding,’ Thomas said.
‘Post-RDR the SJP business model looks robust. The partners have equity, meaning their interest is very aligned to the performance of the PLC, cashflow is strong and I believe the overhang from the uncertainty surrounding Lloyds has held back the stock.’
SJP had been gathering plenty of support in the run up to the RDR.
Rathbones chief investment officer, A-rated Julian Chillingworth, was among those backing the firm, saying it was well placed to take advantage of the regulatory changes.
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