Still up against chal­lenges

Finweek English Edition - - MARKETPLACE - Ed­i­to­rial@fin­week.co.za

Al­lan Gray has taken a 10% stake in Ellies, which has cre­ated some ex­cite­ment. A num­ber of peo­ple have asked me if this is a sig­nal to buy Ellies. My an­swer is no. The com­pany still faces sig­nif­i­cant chal­lenges, and this stake would have cost Al­lan Gray some R35m – a very mod­est amount for a large as­set man­ager. Fur­ther, as­set man­agers some­times get it wrong; re­mem­ber Al­lan Gray holds al­most 7% in African Bank shares.

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