Activist investors return to target Alliance Trust

Alliance Trust may be faced with more hostile corporate action after a US hedge fund declared a 10% stake.

Elliott Associates this morning declared a 10% stake valued at £252m in one of the UK's best-known investment trusts, raising the prospect of an attack on the performance and discount of the trust. Elliott, described by analysts as having "deep pockets" and the resources to fight trust boards, first took a stake of 3% in early 2011, and its last declared holding was 5% in November 2012. The move raises the prospect of a repeat of May 2011, when fellow activist investor Laxey Partners tabled a motion calling for the board to consider externalising investment management and giving share...