Fund boss shows faith in Ashley
NEWCASTLE United owner Mike Ashley has seen a leading fund manager build up a 3% stake in his troubled retail empire, sparking speculation that the embattled tycoon is finally winning over City institutions after much criticism.
Andy Brough, of Schroders, has built a stake in sportswear group Sports Direct following a charm offensive by the retailer which has been besieged by criticism since it came to the market last year. The appearance of Schroder – one of the City’s leading fund managers – on the share register may be seen as further evidence that Ashley is winning over the City.
Having floated at 300p, Sports Direct shares have risen sharply in recent months from a low of 84.25p in December to 124.25p at the market close on Friday.
Mr Brough is reported to have paid an average of 106p a share for his stake while he is believed to own almost 20 million of the 160 million Sports Direct shares not owned my Mr Ashley.
Sports Direct has embarked on a charm offensive, flying a number of City analysts to its headquarters in Derbyshire. Jonathan Pritchard, a retail analyst at Oriel Securities, was one of Mr Ashley’s most ardent critics until he was recently won over. In a note to clients, Mr Pritchard switched his recommendation to buy and wrote: “Our visit to the HQ was revealing and reassuring.”
