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Polar Capital makes a mint after Miton raid
Asset manager Polar Capital (POLR:AIM) is riding high having snaffled star fund managers from a rival outfit. It could enjoy earnings upgrades if its current momentum is sustained.
Polar, currently trading at 358p, launched Polar Capital UK Value Opportunities (IE00BD81XX91) in January with £111m of assets under management (AUM). By the end of the following month it had AUM of £151m, up 36%.
In April 2016 the firm raided Miton (MGR:AIM) for the current manager of UK Value Opportunities Georgina Hamilton and George Godber, who will join her in later this month. When the departures were announced, Miton lost 20% of its market value.
Broker Canaccord Genuity, which has a ‘buy’ rating on the stock, estimates Polar’s total AUM could have hit £9.2bn at the end of February up from £7.3bn year-on-year.
The analyst attributes growth in AUM to two factors; inflows into Polar’s insurance, technology and UK Value Opportunities funds of £200m (partially offset by outflows from its Japan funds) and strong market performance which added £600m.
Polar looks to be on a good run. Canaccord has a price target of 385p. Buy at 358p.