Still up against challenges
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.