The Rise of the Trackers

  • This interesting chart from Bloomberg shows the growth in market share of the ETF tracking funds since 2014.
  • Conclusion :  Perhaps Standard Life Aberdeen should look at launching an ETF portfolio. It gets harder to differentiate as fund managers get larger. In this new world only the specialist of the scaled can survive. But the scaled need to be offering cheap products such as ETF’s.  Standard Life Aberdeen are still calling themselves value investors.  Which is the wrong style in a low interest rate world. As well as the product being more expensive than ETF’s.

Burford – Market Manipulation RNS

Share Price 860p

Mkt Cap £1858m

Conflict Disclosure: No Holding

  • Statement Burford has found evidence of market manipulation after a week end when Gotham City publ;ished its concerns over the answers given on the Burford analyst call which included concerns that Burford stated they “are lawyers; therefore we are trustworthy”. I am tempted to do a twitter poll on who agrees with that statement. They believe that spoofing and layering may have occurred. And that share price declines were not caused by actual shares traded.
  • Valuation The shares remain at 1.4X book value, which equates to a PER of 6.8 and yield 1.4%
  • Conclusion It looks like instead of investing in other third party litigation cases they are now intent on investing in their own, thereby rendering the shares almost uninvestable. Especially when the directors have bought stock recently thereby intending to capitalise on this apparent market manipulation.

jeremy@charltonillingworth.co.uk