Alliance Share Discussion Threads

[tartshagger] 16/2/2016 10:44

Don't feel sorry for Garrett-Cox. Her and Forseke were both ruthless women and good examples of why positive discrimination in favour of women in the boardroom does not work. Garrett-Cox fleeced shareholders out of millions, not forgetting early pay-offs for numerous excellent non-exec directors who were sacked for failing to agree with her. She will now take a "redundancy" pay-off and recieve her vested shares in due course. A classic "fat-cat" case! As Chairman, Forseke should have controlled her, but failed to do so.

For once it seems that activist directors have had a positive influence. When the current equity bear market is over (and it isn't yet)it is my intention to re-build a decent sized position in ATST and enjoy the dividend stream.

[meijiman] 15/2/2016 15:01

Hm -more having the wool pulled over their eyes.

[meijiman] 15/2/2016 15:00

It is -there must be people somewhere in Dundee having their trousers removed.

[topvest] 15/2/2016 14:39

Great news - Kathryn the great (not quite!) has gone. How she got away with the money she earned for such a rubbish performance is beyond belief.

[meijiman] 15/2/2016 12:13

Well done spacecake.With new decent management this could be a good play.Don't tell me the share price has gone up?

[spacecake] 15/2/2016 12:06

Fridays top up is paying for itself already... thank you "self styled global leader"... or maybe it's just luck.

[meijiman] 15/2/2016 10:42

Oh no the self styled global leader has been sacked. Still she has trousered millions of your money so she can go and enjoy spending it.

[meijiman] 18/1/2016 18:00

I read that it is time for Davos again-skiing/drinking/feasting. I wonder if the self styled 'global leader' will be attending this year.?

[gilston] 02/10/2015 15:54

Changes generally well received. Let`s hope for better performance.

[topvest] 12/8/2015 10:04

Think the CEO will be walking the plank at some point soon. No doubt there will be a couple of £m on offer for the very short walk over the edge though.

[emptyend] 12/8/2015 09:23

Any thoughts on how things are developing here? A relative of mine was recently attracted to buy some after being out for some years, following some press/TV interview or another. I don't really follow it, but the current discount levels seem fair enough at first glance.

[meijiman] 08/5/2015 10:39

I see the ghastly woman who manages this was out partying all night. You might have thought that the chief investment officer might want to be in the office sharp and early to assimilate the political story, and the stock implications, not hob-nobbing with the likes of Mandelson. What a revolting specimen he is.

[strollingmolby] 29/4/2015 10:48

Good tweets from Merryn Somerset-Webb at the AGM this morning:

Merryn Somerset Webb ‏@MerrynSW · 1m ago
"Uncertainty around the referendum in Scotland" hit Alliance Trust Savings in 2014...#AlliancetrustAGM

Merryn Somerset Webb ‏@MerrynSW · 2m ago
Profits from ATS: 200k. Cost of defending against Elliott? £3m #AlliancetrustAGM


Merryn Somerset Webb @MerrynSW · 35m ago
Cost of fighting Elliott? £3m. Only to give in. Jeez. #AlliancetrustAGM

[topvest] 28/4/2015 20:14

Changes are likely in my view. The CEO and Chairman still need to go in my view.

[meijiman] 28/4/2015 17:25

Well at least the pressure is on/I think the new investment strategy will take time to prove itself. Need to sit down with a pipe to think this through.Lots of small investors but the board will note the views of the large holders.

[noslien] 28/4/2015 16:38

meijiman "This may have bought another few years on the gravy train."

You are absolutely right. I can only dream that some day the small guys will rebel and kick over the desks. Where is our modern day Cromwell when you need him.

[meijiman] 28/4/2015 16:09

You are being naive Noslien. The object here is not to manage a successful investment trust but to a keep yourself in a job that pays plus £1m p.a for doing very little. Spin it out as long as you can.This may have bought another few years on the gravy train.

[noslien] 28/4/2015 15:58

I don't like this. I think the vote should have been allowed to go ahead, so the views of all shareholders are aired. The CEO and Chair don't have much credibility now. So what are they going to do? Having said all along that Elliott's views were wrong are they going to change strategy? If they had an ounce of integrity they both should resign.

[strollingmolby] 28/4/2015 12:14

Surprised no-one has commented yet... The board of ATST has capitulated before the AGM and allowed two of Elliott's proposed new directors onto the board.

AGM Update and Board Appointments

The Board of Alliance Trust plc announces that, following discussions, Elliott Advisors (UK) Ltd, its largest shareholder, has agreed to withdraw its three resolutions from the Alliance Trust Annual General Meeting on 29 April 2015 and has committed to support the Board and management on all other resolutions.

The Board and Elliott have also agreed on certain mutual non-disparagement undertakings and that Elliott will not call a general meeting or seek to agitate against the Company, its Board or management publicly until after the Company's 2016 AGM at the earliest.

The Board has agreed to appoint Anthony Brooke and Rory Macnamara to the Board of the Company once customary regulatory approvals have been obtained and that they will act as board observers in the interim period. In addition, as previously announced on 14 April 2015, the Board has accelerated the process to appoint an additional independent non-executive director, which will be done in consultation with the Company's major shareholders.

Karin Forseke, Chair, said: "On behalf of the whole Board, I would like to express my gratitude to our shareholders for engaging with us on this important issue. Having considered this feedback we have worked with Elliott to find a compromise which we believe is in the best interests of all our shareholders.

I would also like to welcome Anthony and Rory to the Board where their significant experience will be a considerable asset."

[tartshagger] 13/4/2015 21:21

The huge discount to NAV that the Alliance Trust habitually trades on is because they overpay for very large positions - what Garret-Cox calls "investing with conviction". Because of this arrogant approach, ATST also has a problem selling large lines of stock for the price they want - one cannot just click the "sell" button on one's platform and close a £45m position in GSK (for e.g.) and obtain the offer price on ADVFN. So they suffer from a 14% discount to NAV. They calculate their NAV from the offer price at the daily close and so suffer from a double whammy on the discount.

Garret-Cox recently dismissed the Head of Equities for this very reason: she may deny the truth but my spies in Dundee tell me that he was blamed for the Trust's inability to sell large lines of stock at the prices she wanted and so reduce the discount.

Many good directors have left the Trust's board after less than three years service, because they have tried and failed to implement reforms such as outsourcing management and have disagreed with Garret-Cox and the Chairman Karin Forseke. This strongly suggests weakness in the Board's ability to properly influence decisions for the benefit of the Trust's shareholders. Garret-Cox is clearly overpaid and so has a vested interest in maintaining the status quo.

Many years ago, after an AGM in Dundee, I had a glass of wine with Catherine Garret-Cox and talked with her about her plans for the Trust. I was unimpressed - I was reminded of Margaret Thatcher - when I asked her if she was actually going to accept the £1m golden hello, she replied that of course she would as the Board had offered it, she then circulated to another shareholder. I thought that she was really only after the money and as a result I divested my long-held position in the Trust and re-invested the proceeds with Witan. I've done very well there.

Its clearly time that Garret-Cox and Forseke resign and find something else to do. The Trust needs a strong Board capable of taking difficult decisions, this certainly will not happen whilst they have the ability to force good directors out and so maintain the status quo.

[topvest] 30/3/2015 19:42

Yes, this is the end for the CEO - if the likes of Tim Ingram thinks she should go then people will listen and take note. Unfortunately, she will no doubt take a massive pay off, but better she just goes.

Paid three times as much as Andrew Bell at Witan who is doing a much better job.

hxxp://www.theaic.co.uk/aic/news/citywire-news/former-alliance-trust-director-attacks-garrett-cox

[strollingmolby] 30/3/2015 12:49

Both articles in the Sunday Times and today's Times commenting on the Tim Ingram letter are available on Elliott's site...

[glynedwards] 30/3/2015 09:50

This all depends on whether you are a Carpetbagger or a long term investor. I think the long term performance has been fine and so I will vote with management and against the short termers.

[gilston] 29/3/2015 11:26

Open letter to investors from Tim Ingram [non exec director 2010-12] described by S.Times today as a "bombshell" for its criticism of Trust`s performance & remuneration levels.

[topvest] 27/3/2015 21:12

A good article in the FT. I want the Chairman and CEO to resign, but I don't want the Elliott directors on Board. I just want a decent decision for this trust, rather than continued mediocrity and greedy directors. Lets think about alternatives; the Witan multi-manager approach, Lindsell Train, Neil Woodford, Troy....the list goes on and on. Surely there is a better way forward.