AIB regains its form in Rehab investment race

AIB Investment Managers recovered its form last month after plunging to last place in February's Rehab Great Investment Race.

The fund, managed by Lance Graham, recorded the highest monthly gain of the six investment managers participating in the charity race, propelling it back into first position in the overall rankings.

Over the month, the fund gained 13.9 per cent, a move Graham attributes to gains in the very same technology stocks that cost him in February. CSR and Wolfson Microelect performed well, delivering returns of about 30 per cent and 22 per cent respectively. Graham chose to sell Wolfson before the end of the month, saying it was becoming too volatile.

The portfolio's return-to-date since the start of the contest in mid-November is now 33.9 per cent.

Meanwhile Bank of Ireland Asset Management, which in February was the main beneficiary of AIB's demise, didn't fare so well, coming bottom of the monthly rankings and falling from first to fifth place in the overall ratings.

Fund manager Chris O'Reilly's tactic of holding on to a single stock, US pharmaceutical giant Pfizer, didn't pay off this time around. Over the month, the fund lost 6.3 per cent, bringing the return-to-date to 13.2 per cent.

Irish Life & Permanent had a better time, moving up to second place in the monthly and overall rankings thanks to a strong performance in the group's own stock.

Over the month, the fund delivered a return of 5.3 per cent, bringing the return-to-date to 23.1 per cent.

Fund manager Seamus Magner said he bought Irish Life's own shares ahead of the group's results, which sent the price upwards. He sold out of the stock before the end of the month, making about 2 per cent on the sale.

Another good punt for Magner was US company Chesapeake Energy, which he sold after it benefited from a one-off intraday spike.

During the month he also acquired and held on to Independent News & Media, Greencore and Irish Estates, all of which have seen significant upside in recent weeks.

Third place in the overall rankings at the end of March went to Hibernian Investment Managers, though its monthly performance was little to shout about, coming in second from bottom after losing 0.5 per cent.

The performance of the fund, managed by Roy Asher, was dragged downwards by a 6 per cent decline in Ark Therapeutics. However, gains in worldwide commodity prices helped limit the overall decline, with positive performances from fund members Petrofac of the UK and Southern Copper of the US. After holding some cash at the end of February, the fund is fully invested.

Elsewhere, Oppenheim Investment Managers, which in February topped the monthly rankings, fell to third place in March. However, in the overall ratings it climbed one place to fourth position, with a return-to-date of 13.3 per cent, marginally ahead of Bank of Ireland.

The portfolio's monthly gain was 2.4 per cent.

The gain came amid heavy trading from the fund's manager Richard Dunn who bought five stocks and sold six, leaving him with holdings in four companies at the end of the month.

Finally, Setanta Asset Management continued to trail its peers, floundering again in last place in the overall rankings with a loss to date of 1.6 per cent. The monthly performance was somewhat better, with a gain of 1.2 per cent, putting it in fourth position for March.

The lacklustre performance came as fund manager James McSweeney again engaged in some active trading, buying four stocks and selling five. At the end of the month he held on to two stocks and has a quarter of his portfolio in cash.