Stock takes: Horse trading

Opinion

Institutional investors raised their eyebrows on Tuesday as Australasia's biggest horse race coincided with the sale of a huge property stock on the NZX. One fund manager said: "See the large crossing in Vital Healthcare Property Trust last night during Melbourne Cup - 16 million- plus units at $1.20?"

Another influential fund manager picked up on the trade after Accident Compensation Corporation declared itself the vendor, following a substantial security holder notice from Nicholas Bagnall, Blair Tallott, Paul Robertshawe, Ian Graham, Blair Cooper and Ian Purdy. "Interesting that ACC is selling out given that it was a big proponent of internalisation - for no payment to manager," he noted. "Not sure what happens next. Maybe the buyer is positioning themselves to buy management contract off ANZ? Not ideal."

ACC bought into Vital at around $1.05 and sold to NorthWest, so appears to have backed the right horse. Bagnall, ACC's investment manager, yesterday encouraged others to take up the fight. "We continue to believe that it is in the best interests of unit-holders for the trustee to remove Onepath as Vital's manager. It will be up to other shareholders to vote on our resolution."

Brighouse bows out

The executive team at Brook Asset Management bears little resemblance to its former self following the departure of managing director Mark Brighouse to Fisher Funds Management. Australia's Macquarie took a 49 per cent stake in the fund manager in 2004 and went to full control in 2007. Principals Paul Glass and Simon Botherway left in 2008.

The rest of the old guard - Justin Edgar, Mel Firmin, Chris Gaskin, Stu Graham, Michael Lock and Slade Robinson - all followed suit but another Brook executive, Andrew South, left and came back.

Glass now heads Devon Funds Management, after buying Goldman Sachs JBWere's funds management business early last year. Firmin, Gaskin and Robertson joined Glass at Devon last year.

Botherway is now general manager of investment for ANZ Wealth. Brook, a specialised investment and portfolio management company, has appointed Macquarie Private Wealth NZ's chief operating officer, Mark Ryland, as Brighouse's replacement.

High stakes

The Shareholders Association is not quitting its campaign to stop what it says could be a big blunder by SkyCity Entertainment to increase non-executive directors' fees from $950,000 to $1.3 million.

The group's corporate liaison, Des Hunt, met the company yesterday about the fee pool rise, which he says is outrageous.

SkyCity has shown no signs of backing down, and if it pushes ahead with the proposal it's bound to spice up the company's annual meeting next Friday.

Snakes and ladders

Latest league table ranking for top performing stocks of the year (to 2pm yesterday) show investment group Hellaby Holdings leading the pack with a return of 41.5 per cent.

This week Hellaby told the market it had cut debt from $165.6 million in December 2007 to $24.5 million at June 30, and was ready to start adding to its investment portfolio.

It is focusing on add-ons to its existing automotive and packaging divisions - mostly likely in the Australian market.

Hellaby pips Kathmandu, which has year-to-date returns of 39.6 per cent, followed by Port of Tauranga at 34.7 per cent and Telecom at 29.4 per cent.

At the other end of the ladder is kids clothing retailer Pumpkin Patch, which is down 58 per cent.

Others struggling this year include wood products company Tenon, down 47 per cent, insurer Tower, down 30 per cent, and Air New Zealand, down 27 per cent.