Daily Telegraph- Edinburgh-based fund manager Baillie Gifford – the largest institutional shareholder in Northern Rock – is believed to have lost more than £250m as shares in the troubled bank have plunged.
The fund management firm – which owns a 5.98pc stake in Northern Rock across a number of funds and investment trusts, including its Saints investment trust, is understood to have paid as much as £11.63p for its 25.2m shares. Shares in Northern Rock closed down 155¼p at 282¾p yesterday – since the start of the year the shares have fallen 76pc.
Baillie Gifford – which is owned by 30 partners – manages £52.6bn worth of investments for individuals investors and pensions. Clients include Cheshire County Council, John Lewis and the University of Edinburgh.
A spokesman for Baillie Gifford refused to comment on why the fund manager had such a large stake in one company.
Other major shareholders in Northern Rock include Scottish Widows, Legal & General and Fidelity.
Staff at Northern Rock have also lost hundreds of millions in recent weeks. Combined Northern Rock staff own 46.7m shares in the bank.
