Buy side Archive

The principle of ‘one share, one vote’ is long cherished by the UK investment community. Under current Financial Conduct Authority (FCA) rules, companies cannot be included on the premium segment of the London Stock Exchange (LSE) – the gold standard for corporate governance – if they have dual-class shares. Such companies also miss out on inclusion in key indexes such as the FTSE 100. But London’s struggle to attract IPOs has forced a rethink. A governmen...

In just a few minutes and with a few clicks of its app, UK customers of food-delivery firm Deliveroo could apply for shares – starting at a £250 ($353) commitment and going up in increments to a maximum of £1,000 – ahead of its March listing in London. The IPO was ultimately the worst in London history, with the share price falling as much as 31 percent, but among the many headlines the company generated was the fact that it had allocated £50 mn worth of shar...

‘Investors should purchase stocks like they purchase groceries, not like they purchase perfume,’ wrote renowned investor Benjamin Graham. And yet many self-professed ‘fundamental investors’ fail to take an active interest in what fundamentally drives the businesses they own; they’re far more interested in the next two years than the next 20. This can create unnecessary tension and uncertainty, ultimately manifesting in a depressed valuation for the company in que...

– Rio Tinto suffered a shareholder revolt with 61 percent of votes cast against the miner’s executive compensation package at the AGM, reported the BBC. The rebellion follows the destruction of sacred rock in Western Australia last year, which led to several executives, including former  CEO Jean-Sébastien Jacques Jacques, stepping down. ‘The board acknowledges that the executive pay outcomes ...