FINANCIAL SERVICES | Staff Reporter, Singapore

Top activist fund eyes one of Singapore's banks

The US$44m fund aims to improve operational efficiency to boost the bank’s value.

Bloomberg reports that the US$44m Singapore-based Judah Value Activist Fund, considered the world’s best-performing activist fund, is eyeing one of the city’s banks.

The fund, which returned 103% in just a span of seven months, is currently targeting mainly smaller Asian companies in industries from commodities to engineering and food.

A newsletter obtained by Bloomberg read, “We are building a bigger position in this bank before we craft an open shareholder letter with proposals to improve operational efficiency that will unlock and increase value in the company.”

In other investments, Judah plans to bulk up in Singapore-listed Ramba Energy via a private placement that will be accompanied by a five-year call warrant for more shares, according to the newsletter. Ramba, which produces oil and gas in Indonesia, has a market value of about US$31m after a 2013 slump.

Judah will take an initial 5.8% stake in Ramba whilst the warrants will hand it another close to 10% of the company’s shares.

Judah Value’s seven holdings include companies in engineering, food, ports and television rights. Eurekahedge described the gains this year as world-beating among activist funds.

Read the full report here.

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