Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Rathbones' Jackson vows to learn from Patisserie hit

Rathbones' Jackson vows to learn from Patisserie hit

Alexandra Jackson, manager of the Rathbone UK Opportunities fund, has pledged to learn from the scandal that engulfed high street cake maker Patisserie Valerie.

Jackson held 2.3% of her £60 million fund in shares of Patisserie Holdings (CAKEP), which were suspended last month as the company warned of 'signficant, and potentially fraudulent, accounting irregularities'.

Chair Luke Johnson has since been forced to issue emergency loans while investors have taken part in a deeply discounted £15 million share placing.

Jackson said she had participated in the rescue rights issue, priced at 50p per share, well below the 430p the shares had been trading at prior to suspension, 'in a small way'.

Fund group Invesco also appears to have emerged as a major backer of the rights issue, upping its stake in the company to 7.8% of the shares last week.

Jonathan Brown had held the stock in his Invesco Perpetual UK Smaller Companies (IAT) investment trust and fund of the same name.

Schroders, Miton and Hargreave Hale were also set to take part in the rescue, according to reports.

Vow to 'learn from this shambles'

'We were very shocked by the news that the chief financial officer had been materially misstating the business's financial position,' said Jackson, in an update to investors.

'As we understand it, there is a viable business despite the fraud and we are reassured that initial restated estimates of profit have not changed in recent weeks.

'Our goal now is to maximise whatever value there is for unitholders, and to ensure we learn from this shambles. Corporate governance is high on our list.'

Despite the hit to the fund over the last month, Jackson has already banked her initial investment in the company, having halved her position after the shares doubled following their flotation in 2014. 'A small crumb of comfort,' she said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Alexandra Jackson
Alexandra Jackson
144/165 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 17.54%
Jonathan Brown
Jonathan Brown
139/206 in Equity - Europe (Performance over 3 years) Average Total Return: 27.38%
Your Business: Cover Star Club

Profile: how Brighton Capital joined Brewin and UBS alumni

Profile: how Brighton Capital joined Brewin and UBS alumni

‘I’m a mini business inside a mini business,’ says Sylvia Bowen, describing her new role at boutique Brighton Capital Management.

Wealth Manager on Twitter