Elliott Advisors in tit-for-tat spat with Alliance Trust directors

 
Tim Wallace
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ELLIOTT Advisors yesterday published a lengthy riposte to Alliance Trust, arguing that the investment group is underperforming the market.

Activist investor Elliott is asking shareholders to add three new directors to Alliance’s board, arguing bosses need more scrutiny. But Alliance Trust’s bosses are resisting the idea, arguing the firm is performing well.

Meanwhile, JP Morgan analysts said performance “has been lacklustre”, but that strategic changes may soon have some effect.

“The current management team has taken major steps to tackle this over the years… and the early evidence on performance is encouraging,” said the analysts.

“That said, it is difficult to see shareholders tolerating under­performance from this strategy over the next few years and, were that to be the case, pressure would clearly grow to outsource some or all of the investment management functions.”

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