The Herald- Bearish fund manager Ian Rushbrook has moved the £190m Personal Assets Trust (PAT) from zero to 75% in equities in recent weeks, and is overweight in banks, he told the trust’s shareholders yesterday.

But the veteran manager, who a year ago apologised to shareholders for being 80% in cash but correctly predicted the meltdown in financial markets, said that "doesn’t mean we think there are no problems ahead for the market".

An unusually packed an-nual meeting at the headquarters of F&C in Edinburgh, at which a lifesize stuffed bear sat on the end of the front row, heard Rushbrook warn that the "fault lines" in banking rights issues were being exploited by hedge funds to drive down the price, then buy shares back on the cheap.

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