Billionaire Mike Ashley has sent senior Debenhams (DEB) directors a deluge of legal letters detailing serious allegations of wrongdoing in a desperate attempt to halt the department store’s refinancing plans. In a highly unusual move, the Sports Direct owner has bombarded staff with 25 communications in the past three weeks as he has wrestled for control of the company, The Mail on Sunday understands. On one occasion, Debenhams received eight letters in a single day. The correspondence campaign is being seen as an attempt by Ashley to bully the beleaguered company into installing him as the chief executive and cancelling refinancing plans that would wipe out his 30% shareholding.
Barclays (BARC) boss Jes Staley was dealt a fresh blow last night when it emerged that the New York fund part run by the investor made famous in The Big Short is betting on a fall in the bank’s share price. Steve Eisman now works for Neuberger Berman, but made his name as a hedge fund boss who cashed in by foreseeing the US housing market collapse that triggered the 2008 crash. The Mail on Sunday revealed in December that Neuberger Berman was betting against Lloyds and Royal Bank of Scotland over Brexit fears. Now it has emerged that Eisman’s firm is also shorting Barclays. Neuberger Berman’s Absolute Return Multi-Manager Fund has placed a bet worth £340,000 against Barclays shares. The company has also ramped up its short positions in Lloyds Banking Group (LLOY) and Royal Bank of Scotland Group (RBS), which are now worth £360,000 and £420,000 respectively. Its bets against UK banks top £1.1 million, according to short-selling data firm Breakout Point.
Royal Dutch Shell ‘B’ (RDSB) is leading the charge back to the Gulf of Mexico nine years after the region was hit by BP’s Deepwater Horizon oil spill. The Anglo-Dutch business splashed out $84.8 million (£64.7 million) on 87 drilling sites at an auction this month, having made just three bids at the previous auction in August last year. Shell bosses have placed significant focus on the area in the past six months. At its results in January, the firm revealed production in the area had increased 50% in two years to a peak of 40,000 barrels of oil a day. Improved technology means it now costs Shell less than $10 per barrel to extract the crude oil from its deepwater operations, and it is of higher quality than oil produced onshore. In total, the latest auction generated $244 million (£184 million) of bids across the 1.26 million acres.
It has not taken long for fund manager Zehrid Osmani to stamp his mark on investment trust Martin Currie Global Portfolio Trust (MNP). Just six months in point of fact. Since fully taking over the reins last October after four months shadowing the previous manager Tom Walker the former BlackRock portfolio and equity research specialist has quietly repositioned the trust’s £200 million of assets. The result is a fund exposed to the big themes that he believes will drive forward world economies and stock markets over the next five years and beyond. Although it is early days, it seems the Osmani makeover is already reaping results with the trust’s performance against its peer group of global funds improving sharply. As a result, shorter term relative returns are more compelling than the longer term numbers.
MIDAS SHARE TIPS: Boutique fund manager Miton Group (MGR) is in pole position when Brexit clouds lift. Miton shares were trading at more than 70p last summer but have fallen back to 55p, amid persistent stock market nervousness. The fall is overdone and the stock should recover. Miton pays a decent dividend too. Buy.
MIDAS SHARE TIPS UPDATE: How 3D software firm Elecosoft trebled your cash in FOUR years. Elecosoft (ELCO) has come a long way and investors may choose to sell half their stock and bank some profits. Keep the rest as the business is still making progress.
