LONDON (Reuters) - U.S. activist investor Elliott Capital Advisors raised its stake in Alliance Trust to 19 percent from 17 percent, a regulatory filing showed on Wednesday, after the Scottish asset manager unveiled a change in investment strategy earlier this month.
Alliance, one of Britain’s largest investment trusts, faced pressure last year from Elliott, who said it needed a shake-up given the fund’s underperformance and the gap between its shares and the value of the assets it holds.
Elliott forced Alliance Trust Chief Executive Katherine Garrett-Cox, one of the City of London’s most high-profile women in business, to step down from the group’s board in October 2015. She also stood down as head of Alliance Trust Investments in March.
Alliance said in mid-December it would outsource the management of its equity investments to eight external managers. Elliott, Alliance Trust’s largest shareholder, said at the time that the move to external asset managers was a strategy it had “long advocated”.
Reporting by Carolyn Cohn; Editing by Rachel Armstrong