Electra unelectrified by Ed

Edward Bramson may have a plan for Electra Private Equity. But if he told you what it was, he would have to shoot you. The activist investor certainly did not tell Roger Yates, chairman of the £940m investment trust, at a recent meeting. All he would vouchsafe was that he wanted to lead a strategic review. Three seats on the board would be nice too.

How about a shoeshine and a cigar? Mr Bramson bought a 19 per cent stake in Electra through his vehicle Sherborne. So he merits a hearing. But other investors should have no compunction in following the board's lead and rejecting his demands unless he has something compelling to say.

The activist appears to be following the game plan that gave him control of investment manager F&C in 2011. He acquired an 18 per cent stake, joined the board as chairman and conducted a strategic review.

But Electra is not F&C, which was a basket case. The 9 per cent gap at which the shares trade to net asset value is typical for an investment trust. A total return of 268 per cent in the 10 years to March was fattened by the run-off of investments in the noughties. One and three-year performance numbers show greater independent vigour.

What are Mr Bramson's credentials? He has pulled off some impressive turnrounds of industrial companies. His stint as F&C chairman was solid rather than exceptional. Scope for reform at Electra is limited. If he believes the business needs fixing, he needs to tell the City how he would do it and what is broken in the first place.

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