LONDON (Reuters) - Hedge fund Crystal Amber Fund Ltd on Tuesday said Britain’s vote to leave the European Union had created opportunities for its brand of activist investing, although it remained cautious on the market outlook.
Activist funds such as Crystal Amber search for companies they believe are undervalued, take a position in the stock and then agitate for change at board level to try and increase the value of the firm.
Faced with a challenging market and economic outlook after Britain’s late-June referendum on European membership, Crystal Amber said, as it reported full-year results, that it believed company management may be more open to engaging as a result.
“We believe the fallout from Brexit has created a number of activist opportunities as companies are forced to adjust to inevitable changes,” it said.
The activist manager, which has 151 million pounds in assets, said its top-10 positions include Britain’s largest listed residential property owner Grainger and oil exploration company Hurricane Energy .
Its most profitable investment for the year was a 5.7 percent stake in James Bond filmmaker Pinewood Group, which earned Crystal Amber 6.1 million pounds after a takeover deal by Aermont Capital.
Some of Crystal Amber’s investments, such as in STV Group and Northgate , lost money for the hedge fund over the year.
Reporting by Maiya Keidan, editing by Louise Heavens