Reuters- Activist hedge fund Carrousel Capital has raised its stake in veteran manager Mark Mobius’s 2 billion pound Templeton Emerging Markets investment trust, ahead of an expected share buyback.
Carrousel, which earlier this year failed in its attempt to shake up the board of the Gartmore European (GEO.L: Quote, Profile, Research investment trust, increased its stake in Templeton Emerging Markets this week to 4.01 percent from the 3.33 percent stake it had built up in January, according to a regulatory filing.
The Templeton trust (TEM.L: Quote, Profile, Researchhas come under pressure from shareholders in recent months, notably City of London Investment Group, which wrote to the trust’s board in November expressing concerns about the trust’s performance and the shares’ discount to net asset value.
Following a meeting with shareholders, the trust said in March it would “bring forward proposals which will provide those shareholders who wish to dispose of a proportion of their shares with anopportunity to do so”, though it has since provided no further details
