This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.
On 1 October 2019 I wrote an article about Burford in which I said that their application to obtain, from the LSE, details of how trades in their shares were placed and then apparently cancelled last August was a rare opportunity to discover whether market manipulation is endemic on the LSE. It is important to highlight that this case is not about Burford, which has become a divisive company. It is nothing to do with whether the claims made by Muddy Waters in respect of Burford are true. It was about an opportunity to rebuild trust in the stock market.
In April, the court case took place. ShareSoc wrote a letter in support of the application. We did this for the simple reason that in our view, many investors do not believe that identifying and prosecuting market manipulation is a priority for either the FCA or the LSE.
It was therefore hugely disappointing that Burford’s court application failed. The reasons for the failure were numerous. One of the more significant ones was that Burford had suffered no obvious loss: while shareholders may have done, the company itself had not directly suffered any financial loss.
The real loss was one of faith in the system. For those who noticed the trading frenzy as Muddy Waters announced one afternoon that it was short an “arguably insolvent” company whose identity would be revealed the next day, who saw the stream of tweets proving that the identity of the stock was widely known by third parties in advance of publication, and then watched the share price of Burford lose 30%, gain most of it back, and then drop 75% as Muddy Waters published their report, it was hard not to conclude that something wasn’t right. For those who were not aware of it already, the rules of the market certainly changed that day.
The court’s key finding was that Burford had failed to show that there was a good arguable case that the trading on the days in question was market manipulation. Burford had argued that, prima facie, it appeared that extensive spoofing and layering (effectively, the rapid placing and cancellation of multiple orders never intended to be executed) had taken place. They were seeking access to the trade data that would reveal whether those orders were coming from the same place.
But the court, relying heavily on evidence provided by the LSE, found that such orders could be the product of legitimate activity. The judgment noted that Burford’s case was “speculative”:
“Burford’s and Prof Mitts’ inability to see fully what went on, because the data available to them is incomplete and in general anonymised, may mean they feel they cannot independently rule out all possibility of market manipulation, i.e. independently of what they are told by the Stock Exchange and/or the FCA” (para 123 of judgment)
As long as you trust the LSE and FCA to fully investigate market manipulation, this seems, at first sight, a satisfactory outcome. But there is a problem. Anyone who was watching closely could see that what happened to Burford – at that time one of the biggest companies on AIM – was anything but usual. If the FCA and LSE ruled that there was no market manipulation, what exactly did happen?
Fortunately, the judge’s reasoning sheds more light on the matter.
“… it is quite typical for legitimate execution algorithms (programmed to execute orders) to be set so as … not to “cross the spread” and aggressively execute against an outstanding buy order. This dynamic … is often confused with the appearance of spoofing by those without an operational knowledge of trade execution” (para 98)
Or in other words, high frequency trading algorithms will generate vast numbers of trades, cancelling and varying them all within milliseconds, looking to all intents and purposes like illegal market manipulation, but actually, being totally “legitimate”. One might wonder what “legitimate” means in that context.
And then later,
It is a significant and important feature of the AIM market, as operated by the Stock Exchange and regulated by the FCA, that generally trading activity is anonymous. Providing Participant Identity details in this case to a third party other than as part of the regulatory regime would be a serious invasion into the confidential and commercially sensitive trading activities and strategies of, it could be, a large number of entirely innocent parties. (para 195)
An ordinary investor may wonder what strategies could be revealed by releasing the trading data in relation to a single company on two days. It appears that there is a genuine fear that “algorithmic” trading companies would have their secrets exposed by this information.
To those of us who believe that investing in the stock market should be a matter of researching a company and buying the ones that you believe are likely to increase in value and selling those which you believe will decline, this revelation may come as a surprise. It is clear from these comments that a major, if not chief, part of the LSE’s function is to enable computers to place and cancel countless trades every millisecond.
This may look like market manipulation, but the LSE, who have a commercial interest in maintaining the income stream provided by high frequency, algorithmic trading, say it is “legitimate”. Indeed, it is a noticeable feature of the judgment that the judge appeared unconcerned by the clear conflict that the LSE has in being a commercial business seeking to maximise revenues with its role in identifying market manipulation. A cynic might say that the difference between “legitimate” and “illegitimate” market manipulation depends on the level of fees you pay to the gatekeeper.
In 2010, high frequency trading (HFT) was estimated to make up over half of all trades placed on global stock markets. The figure is likely to be materially higher now. They are the LSE’s key clients: the average time period a share was held for in 2018 was below 8 seconds. No wonder the LSE is keen to ensure that their right to secrecy trumps our right to have confidence that the markets are fair. And the judge agrees. So there, the matter ends.
My friend Michael Robert Taylor, who writes for the Investment Chronicle and blogs under the name @shiftingshares, referred me to a recent book, Flash Crash, by Liam Vaughan. Flash Crash tells the story of Navinder Singh Sarao, the trader who caused a 1,000 point flash crash in the US and was tried there earlier this year. The book makes clear that Singh only got into the murky world of HFT after complaining many times to regulators about HFT practices.
Michael has long been frustrated by high frequency trading. In his experience, he commonly places trades which get “jumped” by others. In other words, algorithmic traders are often able to see what trade you have placed, then interpose their own trades before yours is executed. As a result, the price you thought you were getting is suddenly withdrawn. The reality of this is shocking to those who believe the market is fair. It looks very much like front-running to many.
A large proportion of serious investors – I hesitate to say all, but I have never found one who didn’t – believe that the FCA and LSE are happy to let this practice continue without scrutiny. It goes back to the question of what is “legitimate ”. The FCA and LSE are of the view that it is legitimate for anonymous people to see the orders that genuine investors are seeking to place in the market, and then to overtake those investors in order to buy or sell shares before those orders are executed, forcing bona fide investors to deal on worse terms and allowing the algorithmic traders to pocket the difference. Most of us would regard such activity as obviously both wrong and undesirable. But if you do it enough, and pay enough in execution fees, it not only becomes legitimate, it becomes the main function of the market.
Of course, there is the counterargument that this multibillion pound a year industry run entirely for the benefit of anonymous entities is nothing but beneficial for the markets, providing liquidity and helping long term investors. When you make such profits you can get anyone to write anything, but anyone who has read Michael Lewis’s masterly Flash Boys may take some convincing that HFT and algorithmic trading are anything other than cheating.
The judge was not impressed by the letter from Sharesoc. The letter referred to the following Twitter poll I carried out in January:
“If you saw some suspicious trading activity take place on AIM, are you confident that the authorities (the FCA and/or LSE) would investigate and prosecute it?”
Of 142 responses, 140 – over 98% – said they were not confident in the FCA and/or LSE. Just pause and think about that. This was a poll answered by serious private investors. And yet, 98% had no confidence in the regulators.
The judge’s view was clear:
“the Stock Exchange and the FCA both said they had conducted a comprehensive review of the fully reconstituted order book and were satisfied, independently of each other, that there was no indication of any unlawful activity. If (which I could not find in any event) the “admittedly small [Twitter poll] sample” were representative of some a priori concern that was at all widespread, the full evidence in this case should have served as reassurance that the concern was unfounded.”
The judge here misses the point entirely. The poll was not in the context of Burford. It was a general question asked without reference to any specific company. As investors, we see activity all the time which reeks of market manipulation: share prices that fall just before a placing or rise or fall just before good or bad news is announced. Holdings announcements which are filed late, if at all. The sort of price manipulation that had Navinder Singh Sarao complaining to regulators until he decided, out of frustration, to take matters into his own hands. The only thing these activities have in common is a failure of relevant regulators to investigate or prosecute.
The notion that the way to rebuild confidence in a system that is widely regarded as biased against the interests of private investors is to tell such investors that the system is in fact working very well is rather patrician, even by judicial standards. But, if you accept that the system is, in fact, aimed at supporting HFT, rather than the interests of legitimate investors, such a view makes perfect sense.
The judge took particular umbrage to one view set out in the letter:
The UKSA/ShareSoc letter was transparently partisan and built up to an unwelcome in terrorem conclusion that, unless Burford’s claim succeeded, “the perception of private investors is likely to be that the preference of the authorities is to ignore, rather than investigate, market manipulation”. The thought that the court could and should be trusted to assess the case for itself, independently and impartially, appears not to have occurred to the authors.
The thought that the investing community might not be convinced by the court, FCA and LSE closing rank does not appear to have occurred to the judge. Had he looked at Twitter, or any number of bulletin boards, he would have seen that the perception of private investors is exactly as the letter had predicted.
The truth is that rather that strengthen confidence in the FCA and LSE, the judgment weakened confidence in the court.
Prior to the case I felt the most important thing was to rebuild confidence in the markets. The judgment makes it clear that I was wrong:
“a conclusion by the court that there was a good arguable case of unlawful market manipulation in a case where the Stock Exchange and the FCA had each, independently, concluded that there was no arguable case at all, could be perceived as an authoritative finding that the systems in place for detecting and/or acting upon possible market abuse are weak. That might be said to be an encouragement, not a deterrent, to those who might be minded to engage in unlawful market manipulation.”
By now we are in the realms of Kafka. I would paraphrase that paragraph as saying that a claim that the FCA and LSE do not investigate market manipulation properly cannot be allowed to succeed because if it did it would suggest that the FCA and LSE do not investigate market manipulation properly.
It didn’t take too long for bulletin boards to discern the echo of Lord Denning’s judgment in relation to the Birmingham 6: that their claim could not proceed because if it did the damage to the police would be too great. The thought that the investing public may have discerned that echo did not appear to have occurred to the judge.
Indeed, the judge even went so far as to conclude, in paragraph 216, that even if Burford had shown a good arguable case that wrongdoing had taken place, he would still have declined to offer relief because of “a risk of damage to public confidence in the FCA as regulator” and “there would be a finding that if wrongdoing were ultimately established, it might then be seen that there had been fault on the part of the Stock Exchange in relation to its facilitation”.
So, in conclusion, it seems that the most important thing is to ensure that the reputation of the FCA and the LSE is preserved. And faced with evidence that the investing public already has already lost faith in such bodies, the court’s response is that they are doing a very good job, and no, we can’t see the evidence that would show whether that is true or not. Preserving the anonymity of those engaged in activity that looks illegal, is regarded as unethical, but is of sufficient commercial importance to be called “legitimate” is also a high priority.
It was hard to imagine how confidence in the markets could be further eroded. This judgment has managed to do so.
Paul de Gruchy, Director, ShareSoc
The author is a shareholder of Burford Capital.
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Group description: | SIGnet Taunton is a new group with around 10 keen members at present, with a range of investment styles and experience. We welcome new members. |
Meeting Type/Venue: | In person meetings at a golf club near to the centre of Taunton. |
Meeting Frequency/Timing: | We meet on the first Monday of every month at a golf club near to the centre of Taunton, 11am until 3pm with a lunch break. |
Group description: | An online group for those who are new to investing, or have only been investing for a few years. Including topics such as: – What is a share or a bond, why and how to buy them. – Comparing funds, unit trusts, Investment trusts and exchange traded funds. – Portfolio management and diversification. – ISAs, pensions, SIPPS and how to save tax. – How terms such as PE ratio and dividend yield are used to value a share. – How to use technical analysis or charting. |
Meeting Type/Venue: | Online using Zoom. |
Meeting Frequency/Timing: | Meetings are usually held on the last Monday of the month at 7:00pm. |
Group description: | An online group for those who already have some experience in investing. Covering topics such as finding companies to invest in, financial statements and ratios, valuation / margin of safety, analysis of companies and investment trusts and exchange traded funds. |
Meeting Type/Venue: | Online using Zoom. |
Meeting Frequency/Timing: | Meetings are usually held on the last Wednesday of the month at 7:00pm. |
Group description: | The Equity Income Group welcomes investors of all levels of experience, from beginners to advanced. The focus of meetings is on dividend paying Investment Trusts, though there is also discussion around individual shares. |
Meeting Type/Venue: | Meetings are held online. |
Meeting Frequency/Timing: | Meetings are held every 6 weeks on a weekday between 7 and 8:30pm. |
Group description: | The Group welcomes investors of all levels of experience, from beginners to advanced. The focus of meetings is on all types of income generating financial instruments, from stocks through Trusts and Funds and ETFs to retail bonds. Meetings involve presentations from members, who are also expected to lead discussions from time to time, as well as discussions on what has been bought and sold since the last meeting. |
Meeting Type/Venue: | Meetings are in-person in a venue in Central London. |
Meeting Frequency/Timing: | Meetings are usually held on the last Thursday of every other month, starting with an informal lunch around 1pm followed by discussions until around 5pm. |
Group description: | A regular Signet Group looking to help members improve their investment techniques through group discussion of member’s experiences. We welcome investors with any level of experience. Group meetings generally start with:
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Meeting Type/Venue: | In person at a friendly pub close to Piccadilly Circus. We also have the option for members to join the meetings remotely if they are unable to attend in person. |
Meeting Frequency/Timing: | Meetings are held in the evening from 6pm to 9:30pm with a 30 minute break for supper, at monthly intervals. |
Group description: | Our focus is on UK listed, high dividend yield individual stocks, although high yield investment trusts/REITS which are of interest to members will also be covered. This group is suitable for members with existing fundamental investing experience (at least 2 years), with a keen interest in discussing in some detail the underlying business, financial performance and future prospects of individual income stock ideas. |
Meeting Type/Venue: | Meetings are held online. |
Meeting Frequency/Timing: | Meetings are held every 6 weeks from 4pm to 6pm on a Monday. |
Group description: | A welcoming group open to all types of investors. Typical meeting content is to have a deep dive presentation on a topic selected by the participants and a session on buy/ sell/ key lessons learnt last month. |
Meeting Type/Venue: | In person at a friendly pub close to Piccadilly Circus |
Meeting Frequency/Timing: | Monthly during the evening on the first Wednesday of the month. |
Group description: | The Enfield Signet Investment group welcomes all types of investors. Currently we are a small group, with a few seasoned investors and others that are looking to learn more about investing more generally.
Meeting content is determined by the group in advance of meetings and the agenda will typically include discussions on stock ideas and other investment themes. |
Meeting Type/Venue: | The meetings are in person at a pub in Enfield EN2. We start with a quick informal lunch followed by a discussion on investment themes, updates on prior investment recommendations and other items members have submitted for the agenda. |
Meeting Frequency/Timing: | We meet at 12:30pm on a week day during the first week of each month. Meetings are 2-3 hours depending on the number of items on the agenda. |
Group description: | This group is for investors rather than technical traders. Although we mostly invest on the basis of Fundamental Analysis, we believe that Technical Analysis can be used to help decide the timing of entering, adding, reducing and exiting investments.
Meetings include presentations by group members on specific topics, and on recent decisions made with the input of technical analysis. |
Meeting Type/Venue: | Online via Zoom |
Meeting Frequency/Timing: | Monthly on the first Monday of the month.
Meetings start at 7 pm, and end between 8.30 and 9 pm. |
Group description: | Our group is a broad church that contains investors of varying experience. Our members’ backgrounds are diverse and include corporate banking, engineering, teaching and the leisure industry. We generally pick a discussion topic for every meeting, e.g. housebuilders or the defence industry, and members are invited to research and discuss different aspects or companies within that industry. We also discuss stocks and investment trusts that we have bought, sold or are interested in and the reasons behind our decisions, and try to make sense of the ever changing investment environment. Discussions are robust and challenging but we are a friendly and approachable group who welcome investors of all levels – we just ask that you contribute, at whatever level you can. |
Meeting Type/Venue: | Our meetings are held in a private room at a nice pub near to South Ealing tube station (Piccadilly Line), not far from Ealing Broadway (District, Central and Elizabeth Line). |
Meeting Frequency/Timing: | We meet every 2 months, usually on a Wednesday morning at 11am. |
Group description: | All levels of experience welcome. A typical meeting agenda includes: – Macro Environment – Trades: Members review existing positions and identify securities with promising TA entry patterns or setups and with suitable risk/reward. Any security, long, short, futures, options may be considered. The convener takes actual positions in trades and maintains his own detailed ledger, accurately measuring performance of individual securities and cumulative activity. Members are notified by e-mail prior to the entries or exits that are decided upon. Following each meeting an updated copy of the ledger is circulated together with the next meeting agenda. Members may wish to maintain similar ledgers of their own but there is no obligation to do so. – Technical Analysis: Techniques and systems used in trades. Members can request discussion of particular aspects of TA. |
Meeting Type/Venue: | Online via Zoom |
Meeting Frequency/Timing: | The first Tuesday of every month from 7 to 9pm |
Group description: | The West Sussex SIGnet Group is open to all investors irrespective of experience. Those with limited investment experience will be encouraged to participate in online training courses operated by SIGnet. The group will be principally focussed on individual stocks or investment trusts covering the UK and US markets and ranging in size from small caps to mega caps.
Meetings will typically include a number of presentations on specific stock ideas and on investing styles and themes. Meetings will also review the performance of our “portfolio” of up to ten stocks chosen by the members in a share picking competition competing against other SIGnet groups across the UK. Additionally, members will be encouraged to identify a share from their portfolios and talk about it for 3 minutes (short ideas welcome). |
Meeting Type/Venue: | We plan to meet physically every month during the day at various venues across West Sussex. During the summer months we may hold a number of evening meetings to encourage attendance from those unable to make meetings during the day. Additionally, we will hold online meetings from time to time. |
Meeting Frequency/Timing: | Meetings will be held on the second Monday of every month. Physical meetings will typically be from 11:30 to 15:30. Evening meetings and online meetings from 19:30 to 21:30. |
Group description: | Open to all investors / people with an interest in investing. Typical meeting will involve members talking about recent purchases, successes, failures and possible future purchases. Also with occasional visiting speakers or members making presentations on a topic of interest. |
Meeting Type/Venue: | We aim to meet on the last Tuesday of each month in a private room at a pub in Playhatch. Start time 7pm with members encouraged to meet up around 6pm for a bite to eat / drink before hand, if their diaries allow. |
Meeting Frequency/Timing: | 7pm on the last Tuesday of the month. Meetings likely to last about two hours but with informal ‘overspill’ before / after. |
Group description: | This group was set up as a forum to discuss companies in detail, each company is introduced by a member and discussion may last one or two hours. Membership is by invitation only and is for experienced investors. |
Meeting Type/Venue: | The group meets at a venue in Waterloo, London. |
Meeting Frequency/Timing: | Meetings are on Tuesday mornings at two month intervals. |
Group description: | This group was set up as a forum to discuss companies in detail, each company is introduced by a member and discussion may last one or two hours. Membership is by invitation only. |
Meeting Type/Venue: | The group meets at a venue in Waterloo, London. |
Meeting Frequency/Timing: | Meeting on Monday mornings at two month intervals. |
Group description: | Group of investors that meets on a bi-monthly basis to discuss all things happening in the world of investing, share each other’s knowledge and give the benefit of each other’s experience. Group primarily focuses on unit trusts, open ended investment companies and investment trusts. However, all investments are up for discussion and new members are always welcome and encouraged. |
Meeting Type/Venue: | Remotely via Zoom on Saturdays on a bi-monthly basis, on dates collectively agreed by all group members. |
Meeting Frequency/Timing: | Bi-monthly. |
Group description: | This group nominally covers the whole of Scotland – although we are also open to members from wider afield. The focus of the group will be on ‘Technical Trading’ rather than Investing. Importantly, we understand that many people do both longer term investing and shorter term ‘technical trading’. Of that mix of styles this group will focus on ‘technical trading’ – so you might expect us to have conversations such as:
Swing Trading, Stop Losses and Position Sizing, Chart Patterns – Cup and Handle, Breakouts, Springs, Flags etc, Support & Resistance, Indicators, Price Targets, Positive Expectancy, Trade Management, Trading Systems, Trade Ideas and Evaluation, Trade Planning, Leading and Lagging Sectors, Leading and Lagging Participants within Sectors, Trade Journals, and the ‘Tools of the Trade’. The majority of the group have both longer term investments and carry out shorter term trades, too. They would term themselves both ‘investors’ with a longer term outlook and ‘traders’ with a shorter term outlook. The group members have broad experience in the markets – including across all asset classes and vehicles (shares – companies, trusts, ETFs, funds; spread-bets, CFDs, Options, Crypto). However, most of the group are predominantly interested in equities within the context of a portfolio. Although some members are highly experienced traders that is not true of all and experience level should not be seen as an impediment to joining. So, if you don’t know who Richard Wyckoff was, or why Fibonacci is even more relevant today than in the 11th Century – don’t worry! Every day is a ‘school day’ for us all – Mr Market makes sure of that! |
Meeting Type/Venue: | The aim is to have a mix of formats to support the requirements of all group members: – Online meetings once per month. Nominally on the last Tuesday of the month in the afternoon. The group will utilise MS Teams. – Occasional Face to Face meetings during week days to suit those members who are retired. – Meetings of opportunity: taking advantage of local investment seminars and events to meet up within the context of investment & trading. |
Meeting Frequency/Timing: | Our aim is to meet at least once a month virtually with physical meetings when the opportunity arises. We are fortunate in Edinburgh to have many quality venues for meetings, and occasional investor events that allow ad-hoc meet-ups around the shared interest of investing & trading. |
Group description: | The Worcestershire group was established in January 2024, and is open to all SIGnet members who have an interest in profiting from, and developing their stock market experience (other asset classes qualify too!). Novices and Fund Managers are made equally welcome.
Meetings consider topical investment issues, facilitate the exchange of ideas, and are intended to provide a forum for the enjoyable sharing of areas of expertise. |
Meeting Type/Venue: | Face to face meetings are held monthly. Various venues in Worcestershire are used. |
Meeting Frequency/Timing: | Meetings are held monthly, on weekdays, typically staring at 12 Noon, and finishing at 3pm. |
Group description: | Our group members have wide ranging investment experience and work backgrounds. Discussion topics include reviewing our recent stock or collective investment buying and selling activity, plus what we are considering buying or selling and the reasons for our decisions. We also have a wider discussion on where we think opportunities might arise in the next few months and what we think needs to be avoided. Members occasionally lead discussions on specific topics such as recent events attended, articles or books of interest and sources of investment ideas and information. |
Meeting Type/Venue: | During the pandemic our meetings were held on Zoom, but we have now resumed meeting in person at a location a few miles to the west of Colchester. Most meetings will now be in person, but it is possible that occasional meetings will be held on Zoom in special circumstances. |
Meeting Frequency/Timing: | We meet midweek every two months. Zoom meetings run for about two hours from 10.30am and in person meetings from 11am until about 3pm, including a break for lunch. |
Group description: | This group meets to look at issues that are of interest to the group, to look at individual companies with an investors eye and collectively raise the group’s knowledge of investable companies. There is also discussion on buys and sells made by members which calls upon and builds the collective skills and understanding of the group members. |
Meeting Type/Venue: | The meetings are held in Piccadilly Circus in a pub private room. The group does not meet on zoom. |
Meeting Frequency/Timing: | The group meets on the second Wednesday in every month from 6.30pm to 9pm. |
Group description: | The National Group is open to all members of SIGnet. It is intended primarily for new SIGnet members, who may not yet have found another suitable group to join. We aim to welcome new members and discuss their investment interests and current investment topics. Investors with all levels of experience are welcome to join. |
Meeting Type/Venue: | Online |
Meeting Frequency/Timing: | The National Group meets monthly, on a weekday evening. Meetings are generally from 7-8:30pm. |
Group description: | This group was formed in September 2023 and meets in-person during the evening in a London pub. The group is open to all investors – a good proportion of the initial membership are experienced investors. |
Meeting Type/Venue: | In-person meetings. Pub. Dinner and drinks. |
Meeting Frequency/Timing: | Monthly on the third Tuesday of the month from 6-9pm. |
Group description: | We are a small group of committed, thoughtful, active, amateur investors who are mostly retired. Our core investment philosophy has always been to look for fundamental value in companies and our inspiration has been Warren Buffett. We are generally buy and hold investors, not frequent traders.
We will look at a wide range of investments, including for example, investment trusts, OEICs and ETFs as well as companies of any size. However we do not look at the more exotic areas of investment such as options, other financial instruments or hedge funds. Our discussions range widely over the myriad of factors that may influence investments and include macroeconomics, investment psychology and political trends and from time to time a member will present a book review relevant to investing. Typically the agenda will include an update on members’ investment activity since the last meeting and a presentation on an interesting potential investment by one or more members. We are all existing or former professionals and undoubtedly it is the combined experience which always makes the meetings both interesting and challenging. |
Meeting Type/Venue: | We have face to face meetings every two months at a venue close to Waterloo Station, London. |
Meeting Frequency/Timing: | Meetings run from 11am to 4.30pm, usually on a Tuesday and include a lunch. |
Group description: | Group focused on active investing, primarily in small / medium cap UK equities. |
Meeting Type/Venue: | Regular Zoom meetings interspersed with occasional face to face meetings and social activities in the North West. |
Meeting Frequency/Timing: | Monthly on Saturdays at 10am. |
Group description: | Our group covers a wide spectrum of mainly stock market investing and trading from equities – which include shares, ETF’s Investment and Unit Trusts. We normally rotate the meeting chairperson (responsible for creating, with member’s help, suitable agendas) and a meeting presenter (members take it in turns to provide a 15 to 45 minute presentation on a subject of their choice). Various investing topics of interest are regularly discussed such as software, brokers, investing categories and markets and any related topics of interest. |
Meeting Type/Venue: | Meetings will be returning to in-person in a private room at a West London golf club, close to an underground station. In the meantime monthly video calls and an in-between meeting email group will continue. |
Meeting Frequency/Timing: | In-person meetings will be held on the second Wednesday of each month in the afternoons, following a golf club one course lunch. |
Group description: | The Options group has been meeting monthly for some 20+ years and new members who are either trading or interested in trading options are always welcome. Our members trade options predominately on both UK and USA shares, indices, currencies and commodities. |
Meeting Type/Venue: | Meetings take place via video call. |
Meeting Frequency/Timing: | Meetings are monthly, on the 4th Wednesday of each month, normally from 12:30 to 2:30 and sometimes run over. |
Group description: | This group is nominally the Edinburgh group. However, the group actually draws membership from: Edinburgh, The Lothians, The Borders, Fife and Stirlingshire.
The majority of the group are what you could called ‘investors’ with a longer term outlook rather than ‘traders’, but several have broad experience in the markets. Most of the group are predominantly interested in equities within the context of a portfolio. Some members have interests across asset classes and are interested in portfolio construction and portfolio management. Although some members are highly experienced investors that is not true of all and experience level should not be seen as an impediment to joining. The group is open to new members. |
Meeting Type/Venue: | The aim is to have a mix of formats to support the requirements of all group members:
– Online meetings once per month in the evenings to suit those members who are working |
Meeting Frequency/Timing: | Our aim is to meet at least once a month virtually with physical meetings as frequently or more often when the opportunity arises. We are fortunate in Edinburgh to have many quality venues for meetings, and occasional investor events that allow ad-hoc meet-ups around the shared interest of investing. |
Group description: | This group is open to all levels of investor and is particularly popular because it meets after working hours in central London. The meeting usually has a presentation or group discussion on aspects of investing and also runs a Buys & Sells session which gives everyone the chance to see what the other group members are buying or selling and why. |
Meeting Type/Venue: | The venue is near Victoria Station in a pub where the group also enjoy a meal from a typical pub menu. |
Meeting Frequency/Timing: | This group meets in the evening in London. It is a face to face group that meets every third Tuesday in the month from 6.30pm to 9pm. |
Group description: | This group is for those interested in investing in the USA. It is open to all investors with a special interest in this area and all levels of experience are welcome. A typical meeting will have a discussion on a particular market issue or a presentation by a member or external speaker on a subject of interest to the group. All members are expected to play a part in presenting and to take an active role in making the group of value to all its members. |
Meeting Type/Venue: | As a specialist group with a wide geographic spread of members, our meetings are held on zoom. |
Meeting Frequency/Timing: | Meetings are monthly and are held on the third Tuesday in the month from 11-12.30PM. |
Group description: | A group that welcomes investors with all levels of experience. We aim to provide a friendly north-eastern welcome to anyone that wishes to join, share their knowledge of investing and benefit from others’ knowledge and experience.
The group discusses a range of investment related topics. |
Meeting Type/Venue: | Currently, we’re meeting in-person at a venue in Durham. |
Meeting Frequency/Timing: | Meetings occur monthly, on weekday evenings from 7pm-9pm. We may vary this, according to demand from group members. |
Group description: | We hold monthly in-person meetings with possible exceptions in August and December. Discussions are generally on the topic of investment strategy and potential companies of interest. Each member is expected to make an investment-related presentation approximately once a year. |
Meeting Type/Venue: | We meet in a private room at a pub around 7 miles SW of Oxford. We usually each order a dish from the pub menu that is served during the meeting. |
Meeting Frequency/Timing: | Meetings are in-person, monthly on the 4th Tuesday of the month at 7pm. Typical meetings last 2 to 2.5 hours. |
Group description: | The group has been successfully operating for over 20 years and currently has members with diverse investment styles. However there is sufficient in common to ensure an interesting mix of ideas and experience which provides a great sounding board for investing as well as the opportunity to enhance our investment skills.
Some members lean towards a buy and hold approach whilst others trade more frequently, some use technical analysis methods, others use fundamentals or a combination. Discussions cover companies predominantly listed on the London Stock Exchange, including small AIM stocks, but investments in other countries are sometimes included. Investment trusts, exchange traded funds, bonds and some other financial instruments are included. Economic issues as they relate to investing are discussed for those who adopt a top down approach. Additionally, experience of different investing software and information sources provides good insights into what members find works well for them. If an investment related subject is of interest to the majority of the group then it is included, such as government budget announcements, pensions and inheritance tax etc. |
Meeting Type/Venue: | Pre Covid we had face to face meetings once a month in a pub for a 3 hour session just a few miles to the west of Cambridge during an evening. Covid forced a change to video conferencing for meetings. These meetings remain monthly but are split into two shorter sessions, they normally take place on the first and second Thursday of each month. From 2023 at least two meetings during the year will be face to face.
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Meeting Frequency/Timing: | Monthly, usually on the first and second Thursday of each month from 7pm. Any face to face meetings will also be on a Thursday at 7pm. |
Group description: | The group is open to more experienced and established investors who are active traders in shares, bonds and other investment vehicles. All present members are “mature” individuals but this would not preclude younger experienced investors.
At present there is an interest within the group in AIM shares with a view to inheritance tax planning but this is not in preclusion to other interests, REITs, Investment Trusts, Property etc. |
Meeting Type/Venue: | Meetings take place in person at private houses mainly in the north Leeds area. On occasion, especially in the summer, meetings may be held in members’ houses elsewhere in the general area.
At each meeting the members outline their recent activity and its relevance to their overall investment goals. Current fiscal events and economic conditions are discussed. |
Meeting Frequency/Timing: | The group meets each month on a working day determined at the end of the preceding meeting.
The meetings commence at 10:30 am and continue until around 1:00 to 1:30 pm. |
Group description: | A small group covering Dorset and South Hampshire.
We enjoy wide ranging discussions sharing views and knowledge on all investing types. We discuss relevant world events, sectors of interest, unit and investment trusts and individual equities. The group has been running for many years and members are all active investors. New members welcome. |
Meeting Type/Venue: | Monthly meeting alternating between Zoom and Face to Face. The latter is in a local pub near the New Forest. All the meetings of recent years have taken place in the evening. |
Meeting Frequency/Timing: | Monthly during the evening, 7pm-9pm. |
Group description: | Meeting once a month, our group covers a variety of investment styles. We also have an active WhatsApp group and we welcome new members. |
Meeting Type/Venue: | Physical meetings at a venue in Preston, Hitchin, SG4. |
Meeting Frequency/Timing: | Monthly on a Saturday at 10am (usually the last Saturday of the month). |
Group description: | Experienced investors who have been members many years and newer members wanting to learn about investing. Members discuss portfolio content and reasons why they have certain assets and investments. Buys and sells discussed along with interesting shares being considered along with current issues in the market of local or international influence. |
Meeting Type/Venue: | Physical face to face meetings held in a central pub in Easton in Gordano. |
Meeting Frequency/Timing: | Usually monthly to 6 weekly, mid week 12 noon to 2pm with lunch. |
Group description: | We are a relatively small group, but have a wide range of interests so always start every meeting with a discussion about world issues and the “investing environment” generally. We always discuss individual members market activity and any interesting opportunities on their watchlists. There is currently a lot of expertise in the small cap value area of the market within the group. |
Meeting Type/Venue: | Our preference is for a physical meeting and a hotel in Meriden (Coventry) is the usual location, but we do have on-line meetings when weather and/or health issues make that the most suitable option. We rotate the chair and this is agreed at the previous meeting. |
Meeting Frequency/Timing: | Our preference is to meet every 4 weeks on a Thursday evening, but the exact details are agreed at the previous meeting. |
Group description: | A small group whose primary interests are equity and Investment Trusts. |
Meeting Type/Venue: | Currently meeting online using Skype. It is envisaged to have occasional meetings at member’s private houses in the future. |
Meeting Frequency/Timing: | Meetings are held fortnightly on Tuesday mornings using Skype. |
Group description: | Most members are experienced investors. The main focus is on equity investments (single stocks or investment trusts). Other asset classes are discussed. Meetings involve presentations from members who are expected to lead discussions from time to time. |
Meeting Type/Venue: | Meeting quarterly, physically in Central London. Other months (8 months per year) on Zoom. |
Meeting Frequency/Timing: | Meetings are generally held on the 3rd Wednesday of the month. The Quarterly physical meetings are from 11am-4pm (with approximately 1 hour break for lunch), the Zoom meetings (during the other 8 months) tend to last up to 2 hours (11am – 12:45pm). |
Group description: | A long-established group, however, we welcome new applications. Our meetings start at 10:15am with coffee and scones when members comment on their investment activities since the previous month. Generally, each member reports on a specific Company/IT/Fund e.t.c. This brings us to about 12:30pm when the meeting ends, and we have lunch. |
Meeting Type/Venue: | In-person at a Golf Club in Belfast. |
Meeting Frequency/Timing: | The group usually meets on the second Wednesday of the month, all year round, except in July and August when we have no meetings. Meetings commence at 10:15am and last 2-3 hours (including lunch). |
Group description: | We welcome anyone interested in investments regardless of their level of knowledge and experience. |
Meeting Type/Venue: | Physical meeting in the Boardroom of a venue in RG9 (pre-meetings in the bar). |
Meeting Frequency/Timing: | Monthly – 3rd Wednesday of each month at 18:00 (except January, where the meeting will be held at lunch time). |
Group description: | We are a friendly social group welcoming investors with all levels of experience. Our membership varies between those with little or no knowledge of investing to those who live off their investing or their portfolios. We do not invest as a group so there is no money on the table, and we never discuss individual worth; we simply discuss and share investing ideas, we analyse the state of the market, individual stocks, funds, trusts, bonds etc., and we invite contributions from all group members. Guest speakers and company presentations are a regular feature, as is the SIGnet competition and also our own long-term Manchester Portfolio. We invite members to volunteer presentations from time to time on particular topics of their interest / expertise. At each meeting members are asked to share their latest or potential buying and selling activity. Our face-to-face meetings are punctuated by a lunch break, and for those with the time there is socialising and drinks afterwards. Most of all we learn from each other. |
Meeting Type/Venue: | The group meets through a combination of Zoom and face-to-face meetings at a central Manchester boardroom style venue. |
Meeting Frequency/Timing: | Meets bi-monthly, 10am-3pm on Monday mornings, usually mid-month. |
Group description: | The Leicester Square Group welcomes investors with all levels of experience, but all members are expected to contribute to our discussions. We discuss/analyse individual stocks, market trends and investment topics. Guest speakers are sometimes invited to address the group. At each meeting all members are asked to inform the group of what stocks or collective investments they’ve been buying or selling, or are considering buying or selling. A friendly and supportive discussion is encouraged. The meeting is punctuated by a lunch break, providing an opportunity to socialise. After the meeting, members may stay on for drinks and to socialise further. |
Meeting Type/Venue: | Physical meetings at a central London venue |
Meeting Frequency/Timing: | Meets bi-monthly, 11am-4pm on a weekday |
Hi Paul,
Having followed this case very closely and sat in on the two and a half days of the High Court hearing – your summation and interpretation is perfect. The convoluted logic of the judgement is hideous. A sad and shocking position.
Regards, David
Thanks Paul,
Indeed, while I can see some justification for the judge not wanting to do the FCA’s work for them, it leaves investors out in the cold and with nowhere to turn. The inaction of the regulator in this and many other cases is made worse by the fact that economic interest of the LSE is aligned with the HFT and not with investors.
Regards,
Mark
Hi Paul
I absolutely applaud your well argued sentiment. It’s tragic that the High Court should have backed this outrageous behaviour. As a long term private investor for many years, I am alarmed by the way daily market prices are utterly dominated by short term traders speculating on the path of the share price over the next month (and manipulating markets) – computerised algorithms have made this many times worse. Why can’t these people bet on horse racing or flies climbing up a window and leave share markets alone! The liquidity argument is nonsense – we don’t need to be drowned in “liquidity”. Yet the self interest of those running the markets ensures a complete lack of interest in the consequences of this damaging behaviour. Who cares if honest investors are screwed?
Regards
Malcolm
Thanks Paul. I can recommend both ‘Flash Boys’ and ‘Flash Crash’ to anyone interested in this topic. They are both great reads. Whilst the reluctance of the LSE to see a problem is understandable given the money they make from it, the worst is the supposedly independent FCA.
Regards, Nick
Paul, you really have shown that the private investor hasn’t a leg to stand on.
It is as though much of FCA / LSE is just not interested in us. But when the High Court backs them up – it beggars belief.
If THEY were right, it would have been SIMPLE to prove it. If, as I think, there is something totally underhand that needs to be attended to, the FCA and LSE would really have a problem on their hands. Hence they somehow had to make sure nobody found out about the trades .
Burford was asking a regulated entity that provides a service to disclose to it the identities of third parties, on the basis that it might find some activities on which it could base a subsequent case. It could equally have asked Google or Apple to reveal data and identities of their users on the off chance that Burford could find what it considered wrongdoing. I know the probability is lower, but I’m suggesting an extended analogy to highlight the point.
Hence, I consider that the judge was entirely correct in his verdict. While I’m no fan of many aspects of the LSE and AIM, I think Burford’s case was close to frivilous in this instance, and clearly given their day jobs, that’s a concern for Burford investors.
Considering the wider issue – did significant market abuse actually occur? Most Sharesoc members would probably consider themselves ‘fundamental investors’. That means we consider the financials and operations of a business and try to establish some personal view of value to compare with the market ascribed price. If it’s cheap enough, we may buy and vice-versa. For that process to work correctly, the instrument’s public market information must be accurate. If the accurate information is known only to a small number of individuals or corporations, then there is the potential for market abuse.
In this instance, Burford are alleging that the misinformation is a larger number of sell orders than buy orders on the LSE order book, and orders were placed and cancelled or changed. I confess that when investing in small-cap stocks, I will sometimes look to see if the stock is ‘well-bid’ or ‘well-offered’ before placing a trade, but that is just for reasons of timing. I’m perfectly aware that market participants will often not wish to publish their full intent, and in doing so, show only part of their order, or otherwise conceal their true intent. However, it’s going a huge step further to imply that orders (not trades), which can currently be placed and removed without significant restriction, imply something fundamental about the merits of an investment. Surely only the most naive investor would allow such peripheral information to affect their medium or long term investment decisions?
Burford claimed that this wall of layered and fluctuating sell orders caused it’s price to fall, and that the person(s) responsible may actually have been intending to buy their shares. They specify a couple of days on which this activity occurred. I don’t recall the exact number’s in Burford’s case, but the price started somewhere north of $15, and fell to sub $5 in loose numbers. Those investors’ shaken out by allowing their perception of value being well northing of $15 to be overridden by some anonymous sell orders on the book, surely now have had over eight months to buy at prices substantially below where they believe value to lie. Isn’t that a great opportunity? Even on the day of the fluctuating orders, anyone wanting to buy could place an order on the book at what by implication would have been an advantageous price.
Brian.
https://citywire.co.uk/wealth-manager/news/aa-rated-manager-questions-lack-of-transparency-in-burford-case/a1359098
https://www.thetimes.co.uk/article/burford-capital-wades-into-muddy-waters-zlk05wb09
What right of redress does a retail shareholder have?