Activist investor Edward Bramson has dismissed Barclays CEO Jes Staley and admitted defeat in his three-year campaign to reduce investment banks to lenders.
Sherborne Investors, a fund run by Bramson, said Friday it sold all of Barclays shares at an average price of 186 pence. It was first acquired in March 2018. For most of that period, Sherborne was Barclays’ largest shareholder.
“The sector rotation that raised Barclays and most other banking stocks may need to go further, although it is well behind the investment banking cycle,” Sherborne said in a statement.
“We believe that new investments will generate better returns and we have a clear outlook that we will be engaged in a business turnaround,” he added without specifying a goal. ..
Bramson’s opposition to Barclays’ strategy focused on investment banks. Starry refused to withdraw, despite years of substandard returns compared to the Group’s retail and credit card divisions.
However, during the coronavirus pandemic, revenues from banking transactions and the trading sector surged in a volatile market and high debt demand. At the same time, retail profits plummeted amid huge lending and slowing consumer spending.
Staley argued that this development proved his treatise that investment banks were a good counterbalance to personal lending during the crisis.
Sherborne also runs a major lender because of his historic relationship with the late shameful financier Jeffrey Epstein, who was Starley’s client when Starley was at JP Morgan Chase. He claimed that he was not the right person.Bramson called the situation surrounding the CEO “Instability … Circus”..
According to the Financial Times, Chair Nigel Higgins continued to support Mr Starry, but began searching for his predecessor.
When the pandemic broke out, Bramson suspended the campaign, but Reboot See you last August. He was defeated in 2019 trying to secure a seat on the board and failed to get much support from other shareholders for his views.
The Secret Fund is based in Guernsey, and Bramson rarely interviews and prefers to write to investors.
“Business is not science, so well-meaning people may differ from time to time,” added a statement from the fund. “In that spirit, Sherborne Investors sincerely hopes that things will work for Barclays, its employees, and its investors.”
Barclays declined to comment.
Activist Edward Bramson admits defeat in Barclays campaign
https://www.ft.com/content/97c5708a-5a38-4666-9262-e5d7edaacad9 Activist Edward Bramson admits defeat in Barclays campaign