Standard Life (SLF) Great News....red Woollard puts 4% of his fund into Standard Life
FRED Woollard, the Australian investor who led the campaign to have Standard Life demutualised six years ago, has invested a sizeable portion of his hedge fund in the insurer.
Samuel Terry Asset Management, which invests on behalf of Woollard and his family as well as outside investors, has pumped 4 per cent of its portfolio into shares in the Edinburgh firm, which listed on the stock exchange last month.
In a note to investors, Woollard said: "When we bought it, Standard Life was trading at its 'embedded value' - or what the company would be worth if it wrote no more business. It was also trading at less than ten times my estimate of what it will earn in 2007."
Woollard waited until the first day of trading before buying into Standard Life at 242p a share. The shares closed at 258p on Friday.
Woollard added that although Standard Life "has some risk, and its management's track record has been unimpressive, the price was too cheap".
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