Katherine Garrett-Cox to leave Alliance Trust


#1

Originally published at: http://whichinvestmenttrust.com/katherine-garrett-cox-to-leave-alliance-trust/
In a move which perhaps completes the shake-up for the Victorian era trust Garrett-Cox is resigning from her role as head of the operating businesses of the £2.5 billion trust. Garrett-Cox stood down from the Board of Alliance Trust (LON:ATST) last year following a campaign by activist investor Elliott Advisors, but she retained executive responsibility…


#2

I’m not surprised though I am a little saddened that one of the few investment companies with a female management team is no more.

Still, they didn’t cut the mustard in terms of performance for such a long time.

Garrett-Cox has left with her reputation a little tarnished.

I wonder what she’ll do next.


#3

I agree there should be more ladies as investment trust managers but whilst she earned a fat pay check shareholders didn’t do so well under her watch.

She wasn’t a disaster though, she just never managed to turn performance around fast enough.

Who knows if the team she brought in recently will succeed. Maybe she’ll be proven to have gotten it right in the end.


#4

It really started when Her predecessor Alan Harding came on board and started to make changes.

You can tell when they start making changes to the Annual Report. In about 2004, it was a boring looking document, with possibly one picture of the Chairman, and lots of words and figures. Then the Report became glossier looking - big pictures of all the people working there, pictures of their new shiny Hong Kong office. Then they started splashing out on all sorts of things - private equity, property, opening the Hong Kong office - too much expansion too soon.

I held some Alliance Trust on the basis that it was a boring trust with a safe, dependable dividend. Sold when (a) the Annual Report started looking like a glossy brochure and (b) when the dividend increases started to lag inflation.

I wouldn’t be so sorry about Ms Garrett-Cox. At that level they almost certainly find another position fairly quickly. And there are other women who’ve been running investment portfolios such as Angela Lascelles at Value and Income for years and years.


#5

I think it’s a good time to be buying this actually @satwaki_chanda. I don’t think this discount will be around for too long.