TCI Largest Royal Mail Shareholder

Oct 23 2013 | 1:13pm ET

Amidst widespread anger over the low float price of the U.K.'s Royal Mail comes word that one of the biggest beneficiaries of the privatization is The Children's Investment Fund.

The activist hedge fund is now the postal service's largest shareholder with a 5.8% stake. TCI participated in the Royal Mail's initial public offering earlier this month, which priced the company at £3.30 per share. Royal Mail shares surged on that day and last week crested the £5, leading to questions about why the float price was so low.

Hedge funds were allocated 10% of the IPO, and TCI participated. But the hedge fund bought less than 1% of Royal Mail's shares that day; it has been aggressively buying up additional shares since.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...