City File: Stewart Newton
WHEN an up-and-coming fund manager buys a big stake in a merchant bank that also depends heavily on fund management, outsiders will detect either an incipient bid or a professional compliment. Yet shares in merchant bank Singer & Friedlander remained unimpressed on last Thursday's announcement that Newton Investment Management had accumulated a 16.6 per cent stake, in the names of a number of institutional clients.
Stewart Newton denies any malice aforethought - he simply thinks the shares are good value and that Singers is one of the few banks without any black holes in its loan portfolio. At 52p, near their high for 1992/93, the yield remains a generous 6.4 per cent and the p/e an undemanding 11.4.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies