The hedge fund mogul known as Rottweiler splits one of his funds to avoid a liquidity problem like Neil Woodford.
Toscafund, headed by Martin Hughes, wrote to investors saying that the most difficult-to-sell assets of the Mid Cap fund would be divided into a separate portfolio. His stakes in challenger lender Atom Bank, private hospital owner Circle Holdings and two other companies have been placed in a ‘side pocket’, which means they are excluded from easier-to-sell fund holdings in companies listed companies such as TalkTalk and Ted Boulanger.
Current investors will only be able to withdraw money from the most liquid part of the fund, allowing the most illiquid part to be sold in an orderly fashion over time.
Anyone who invests in Toscafund Mid Cap