Finsbury Fund Targets Games Workshop Amid Major Portfolio Reshuffle
UKPulse Markets Desk
Finsbury Income and Growth fund is set to significantly increase its stake in Games Workshop, utilising a windfall from recent takeovers. This move comes as the investment trust reallocates capital following the acquisition of two long-standing holdings.
- Finsbury Income and Growth fund plans a substantial investment in Games Workshop shares.
- The fund received a significant financial boost from the takeovers of Schroders and Intertek.
- Finsbury has also increased its borrowing capacity from £29.9m to £100m to fuel new investments.
- Co-manager Madeline Wright highlighted Games Workshop's high margins and US expansion as key attractions.
- The fund will also top up holdings in London Stock Exchange Group, Sage, and Relx, and initiate new stock positions.
Nick Train's Finsbury Income and Growth fund is set to embark on a significant reshaping of its £3.4bn portfolio, with a major buying opportunity emerging in Games Workshop shares following the trust's recent windfall from the takeovers of Schroders and Intertek.
Co-manager Madeline Wright highlighted the robust margins and expanding US presence driving growth at Warhammer owner Games Workshop as key drivers for this new phase of investment. Despite the company's shares having more than trebled in value over the past four years, Finsbury is building a position with increased gearing – £100m, up from £29.9m earlier this year – and potentially M&A cash, depending on timing.
The fund's substantial gains, reportedly tens of millions of pounds, have been made possible through the sales of Schroders and Intertek shares to Nuveen and EQT respectively. This capital injection is a rare occurrence for Finsbury, one of the UK's largest investment trusts, which has traditionally maintained a stable portfolio.
Beyond Games Workshop, Finsbury plans to increase its holdings in established investments such as London Stock Exchange Group, Sage, and Relx using the fresh capital. Additionally, the fund intends to initiate positions in new stocks, further diversifying its £3.4bn portfolio.
Why this matters: This move by a prominent UK investment trust highlights a significant shift in capital allocation within the UK market, potentially signalling confidence in specific sectors and companies like Games Workshop.
What this means for you: What this means for you: For UK savers and investors, this demonstrates how large investment funds are strategically deploying capital, potentially influencing the share prices of companies like Games Workshop. While not direct investment advice, it offers insight into the decisions of major market players. Mortgage holders and other consumers are less directly affected by this specific investment decision.