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Can you make money in the FTSE100?

Can you make money by investing in the FTSE100? This thought came to mind when looking at some of the recent market statistics. It's quite an important question because most stock market investors are heavily biased to that segment of the market (as opposed to FTSE250, small cap or AIM stocks) simply because the market cap of the FTSE100 is a very high proportion of the overall UK market. For example, it's about 80% of the FTSE AllShare. So if you ...

Alliance Trust Announcement and ATSAG Response

Alliance Trust Plc have today announced a number of changes "to enhance shareholder value" as they put it. It includes a more focussed investment mandate, a reduction in costs, a commitment to narrowing the discount, a revised dividend policy and a simplification of the corporate structure. The Alliance Trust Shareholder Action Group (ATSAG), supported by ShareSoc, has generally welcomed the changes. You can read the full comments issued by ATSAG in this press release: https://www.sharesoc.org/pr70alliancenews.html Roger Lawson

Quindell law suit, and Camkids

Many private investors lost money on their investments in Quindell. It was one of the most highly traded stocks on the market. Now a legal action has been launched by law firm "Your Legal Friend" on the basis of misleading statements being issued by the company during 2013 and 2014. To quote from the lawyers web site, where you can register your interest (see https://www.yourlegalfriend.com/types-of-claim/public-incidents/quindell-investment-claims ): "We have been contacted by many such investors who relied on a range of positive statements issued ...

Glencore Placing Attacked

In a previous blog post I said that Glencore's plans to cut its debt and strengthen its balance sheet by disposals and a new share issue were "just what the doctor ordered". But it turns out that the detail of the prescription was not to everyone's liking. Institutional fund managers have rightly deplored the fact that the equity issue was a "placing", i.e. not a rights issue that is subject to the normal pre-emption rules. In other words, existing shareholders were ...

Elliott Raises Stake in Alliance Trust

Elliott Advisors have raised their stake in Alliance Trust to 14%. After a battle before the last Annual General Meeting of Alliance, the company effectively conceded defeat by appointing two new non-executive directors as suggested by Elliott. But the issues raised by Elliott of a high share price discount to net asset value, and long-standing poor performance have not gone away – the discount currently stands at about 12%, much higher than most generalist investment trusts. Indeed many trusts are now ...