Key Takeaways
- • Phil King, chief investment officer of Regal, has stepped down from managing VGI Partners Global Investments (VG1) following the listed investment company's FY25 loss of $17.6 million and a 3% portfolio decline, largely driven by a biotech holding (Opthea) that suspended trading after clinical trial failure.
- • Paul Moore, chief investment officer for global equities at Regal Partners (who joined via the 2023 PM Capital acquisition), will assume portfolio management responsibility for VG1, bringing 25+ years of investing experience dating to his 1998 establishment of PM Capital.
- • King will refocus on Regal's domestic and Asia-focused long-short equity strategies in his capacity as chief investment officer for long-short equities, while portfolio managers Marco Anselmi and Henry Hill retain their positions and investment guidelines remain unchanged.
- • The board expects Moore's appointment will improve portfolio performance and narrow VG1's discount to net tangible assets (NTA), citing his established track record in global equity investing.
- • This management transition follows the 2022 merger between Regal Funds Management and VGI Partners, which resulted in the combined entity rebranding as Regal Partners Limited (ASX: RPL).
Summary
Phil King has been removed from direct management of VGI Partners Global Investments (VG1), the listed investment company arm of the merged Regal Partners entity, following disappointing FY25 results. The fund reported a net loss after tax of $17.6 million, with the portfolio declining 3% versus gains of 17.8% in the prior year. The substantial performance deterioration was primarily attributed to a significant biotech holding in Opthea, which saw its shares suspended from trading following the failure of a clinical trial.
In response to the underperformance, the board of VG1 has reassigned portfolio management duties to Paul Moore, Regal Partners' chief investment officer for global equities. Moore, who joined Regal in 2023 through the acquisition of PM Capital, brings a lengthy track record in global equity investment spanning from his establishment of PM Capital in 1998 through prior roles at Bankers Trust. David Jones, chairman of VG1, stated the board is confident Moore's appointment will deliver both continued portfolio performance improvement and a narrowing of the fund's discount to net tangible assets—a key metric of concern for closed-end fund investors.
King will transition to focus exclusively on Regal's domestic and Asia-focused long-short equity strategies in his role as chief investment officer for long-short equities, a repositioning that effectively removes him from the global equity mandate. Portfolio managers Marco Anselmi and Henry Hill will continue in their existing roles, and the fund's investment guidelines will remain unchanged, limiting disruption to the portfolio's operating framework.
This management restructuring occurs approximately three years after the 2022 merger between Regal Funds Management and VGI Partners, which created the combined entity now operating as Regal Partners Limited under the ASX ticker RPL. The move represents a significant leadership change at one of Australia's boutique fund managers, signaling board concern over recent performance and confidence in Moore's ability to restore investor confidence in the global equity fund.
In response to the underperformance, the board of VG1 has reassigned portfolio management duties to Paul Moore, Regal Partners' chief investment officer for global equities. Moore, who joined Regal in 2023 through the acquisition of PM Capital, brings a lengthy track record in global equity investment spanning from his establishment of PM Capital in 1998 through prior roles at Bankers Trust. David Jones, chairman of VG1, stated the board is confident Moore's appointment will deliver both continued portfolio performance improvement and a narrowing of the fund's discount to net tangible assets—a key metric of concern for closed-end fund investors.
King will transition to focus exclusively on Regal's domestic and Asia-focused long-short equity strategies in his role as chief investment officer for long-short equities, a repositioning that effectively removes him from the global equity mandate. Portfolio managers Marco Anselmi and Henry Hill will continue in their existing roles, and the fund's investment guidelines will remain unchanged, limiting disruption to the portfolio's operating framework.
This management restructuring occurs approximately three years after the 2022 merger between Regal Funds Management and VGI Partners, which created the combined entity now operating as Regal Partners Limited under the ASX ticker RPL. The move represents a significant leadership change at one of Australia's boutique fund managers, signaling board concern over recent performance and confidence in Moore's ability to restore investor confidence in the global equity fund.
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