Watch out for the Colonial First State Effect

  1. 10,543 Posts.
    lightbulb Created with Sketch. 3
    This from todays AFR Street Talk section

    The Barry effect

    You've seen "the Greg Perry effect". Now some believers in the celebrity fund manager are calling a "Barry Henderson" effect. But perhaps the "Colonial First State effect" would be a better description.

    In any case, stocks in which Colonial First State has a chunky holding had a rocky week.

    Barry Henderson, Colonial's small-cap portfolio manager, handed in his resignation on Wednesday and traders are already speculating about a selldown in key holdings, even though he's not leaving until January.

    Some of the stocks that look like victims are Ion Ltd, Gunns, Smorgon Steel and Flight Centre.
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.