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Fund Objectives and Questions for River & Mercantile


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R&M are now the third largest shareholders in Rangers with 7.37% of the issued share capital.

 

As stated in the other thread they are "long only" investors i.e. they do not operate hedge funds which might bet on the price of a share going up or down.

 

The shares are held in their World Recovery and UK Equity Long Term Recovery Funds.

 

The objectives of these Funds are as follows:

 

UK Equity Long Term Recovery Fund

 

The objective of the strategy is to outperform a target of LIBOR + 4% per annum. In seeking to achieve the objective the portfolio will primarily consist of UK equities that meet the manager’s recovery criteria of a turnaround in company profitability over the longer term. The manager does not operate within relative risk constraints, but sets absolute limits on the amount of capital allocated to any particular company or sector.

 

World Recovery

 

The objective of the strategy is to achieve capital growth, through investing in a portfolio which will primarily consist of international equities that the investment manager believes will benefit from a recovery in company profitability over the medium and longer term. The Fund will not be restricted by reference to a benchmark, territory, sector constraints or company size.

 

I have a connection with one of the most senior people in the organisation who has invited me to send a list of questions which will be answered by him and/or the Fund Manager, Hugh Sergeant.

 

Hugh Sergeant graduated from the London School of Economics with a degree in Economics. Hugh began his investment career at Gartmore in 1987 as a UK Equities graduate trainee and moved to Phillips & Drew in 1990, managing UK equities throughout his twelve years there. He became Head of Smaller Companies in 1997, establishing a new team and launching the UBS Smaller Companies Fund. In March 2000 Hugh was promoted to Head of UK Equities at UBS Global Asset Management and Chairman of the UK Equities Committee. He joined SGAM in 2002 where he was Head of UK Equities, manager of the Growth strategy and co-manager of the Special Opportunities Fund. Hugh joined R&M in August 2006 and currently manages the UK Equity Long Term Recovery, World Recovery and UK Equity High Alpha Funds. Hugh is Head of the UK Equities team at R&M with overall responsibility for managing and developing the team. (Source - Citywire). He is AA rated by Citywire; having outperformed the average manager in the UK Equity Sector by more than 80% over the past 5 years.

 

I have some fairly obvious ones to start with:

 

  1. Can they chart the build up of the holding to the current 7.37%?
  2. Why were they not listed as having a notifiable holding on Rangers Investor Relations Website when they had 4.7%? (Zappa)
  3. Do they intend buying more shares
  4. Who did they support at the AGM and why?
  5. If they supported the requisitioners what is their view and position on the current Board?
  6. What is their objective /target price for the shares? (unlikely they'll reveal that publicly of course)
  7. Are they looking for a seat on the Board?
  8. Can they get me tickets for the Directors Box?

 

 

I will keep this open until about 9.00pm tonight for additional questions and then pull it together for an email (and I would appreciate it if no one hacks into my account).

Edited by BrahimHemdani
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What made them buy these shareholding in the first place, i.e. do they view Rangers on a solid standing as an investment? (Well, on hindsight, they must have or else they wouldn't have invested in the first place, but maybe he'll elaborate ... )

 

Are they willing to support the club now, i.e. invest some money directly into the club?

 

Have they been in contact with our CEO and if so, did they get assurances that the club is "safe" and investment is going to come in?

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Why were they not listed as having a notifiable holding on Rangers Investor Relations Website when they had 4.7%? (Zappa)

 

It was 3,095,500 shares (4.76%) they held previously according to the RNS on the 27th - http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11845801

 

This is probably a question for the remaining RIFC PLC Directors and Daniel Stewart & co as opposed to R&M though and the question is really more along the lines of why was there no notification to the market that they had crossed the 3% threshold given that they had previously held 2.23% as of March last year.

 

As I say, probably not a question for R&M to answer, although it would be interesting to get a timeline of their share purchases.

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Hugh Sergeant graduated from the London School of Economics with a degree in Economics. Hugh began his investment career at Gartmore in 1987 as a UK Equities graduate trainee He became Head of Smaller Companies in 1997, establishing a new team and launching the UBS Smaller Companies Fund. In March 2000 Hugh was promoted to Head of UK Equities at UBS Global Asset Management and Chairman of the UK Equities Committee. He joined SGAM in 2002 where he was Head of UK Equities, manager of the Growth strategy and co-manager of the Special Opportunities Fund. Hugh joined R&M in August 2006 and currently manages the UK Equity Long Term Recovery, World Recovery and UK Equity High Alpha Funds. Hugh is Head of the UK Equities team at R&M with overall responsibility for managing and developing the team. (Source - Citywire). He is AA rated by Citywire; having outperformed the average manager in the UK Equity Sector by more than 80% over the past 5 years.

 

 

Malcolm Murray was also at Phillips & Drew during that entire period (left in August 2001) and also joined SGAM in 2002.

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What is their expected ROI and where do they see that coming from?

 

In any eventual sale would R&M consider giving supporters first refusal on their holdings?

 

What's R&M' position on a convicted VAT fraudster sitting on the 'Football Board' and having considerable influence within the Club?

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