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Insight grabs stake in Schroder UK Alpha
by Sunil Jagtiani on Jan 31, 2003 at 15:15
Insight Investment Management's unit trust expert Bambos Hambi has emerged as a major backer of a UK fund run by respected fund manager Richard Buxton at Schroders.
Hambi, who manages some £700 million invested in other funds, decided to take a stake in the Schroder UK Alpha Plus fund earlier this year having watched it carefully for some months.
Hambi declined to give exact details but said the investment was worth 'double digit millions' and added Schroder UK Alpha Plus now accounted for around 10% of his Insight funds' UK exposure.
Buxton's fund is worth around £80 million, so Insight is now one of its key backers. The fund was launched last year and has fallen 4% since then, compared with an average fall of 14.8% among rival UK funds.
The Schroder fund offers an aggressively run 30-stock portfolio and aims for good absolute returns, rather than good returns relative to a benchmark, the uninspiring target of the vast majority of UK equity funds.
Earlier this week Buxton told Citywire investors had to hold their nerve. He argued good value had emerged in the UK stockmarket following steep falls triggered by forced selling by insurers.
However, he warned the FTSE 100 index could yet fall to around 2,900 points. The index currently stands at 3,560 points.
Hambi's £700 million multimanager service carried the 'Rothschild' brand until late last year, when banking group NM Rothschild sold Rothschild Asset Management to Insight.
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