Is Jayesh Manek about to become the newest superstar of Londons financial world? Did someone say Jayesh who...?
For those whove missed the headlines in Britains newspapers, Jayesh Manek is the pharmacist turned stock market wizard who has once again proved that truth is stranger than fiction. Manek shot to fame by winning the Sunday Times Fantasy Fund stockmarket contest for two years running and picking up about 2,50,000 in prize money in the process. Manek followed up his paper victory by starting Invil, a mutual fund that invested in the Mumbai stock exchange.
Now Manek is taking another big leap forward. He has launched the Manek Growth Fund that
will invest in small cap firms in London and other European markets. Says Manek: I plan to follow the same tightly focused approach which I have always used.
Last week Manek demonstrated that he is already a name to reckon with in Londons financial world. He kicked off his newest fund at a glittering cocktail party at Coutts Bank on the Strand. Sipping at the champagne in the crowded hall were fund managers and the movers and shakers of Londons financial world.
Maneks latest fund has already had a dream launch. It started with a laudatory article in Londons Financial Times. Within hours his phone was ringing off the hook. (One estimate is that he had 11,000 calls in just three days.) The FT said: He has emerged as one of the UKs few star fund managers.
It didnt stop here. Britains newspapers found the story of the immigrant pharmacists turned stock picker irresistible. Over the next few days they all ran flattering stories on the maverick who manages millions from a poky office above a chemist shop in suburban Ruislip (which isnt a very chic part of town). Manek spoke in Money Matters, Radio Fours respected personal finance programme.
Mind you, Manek already has strong backers. His biggest fan is stockmarket guru Sir John Templeton who gave him 5 million to manage two years ago. Manek repaid that trust by earning 3 million on that money. Now Sir John has thrown another 5 million into the kitty. The 13 million will be the seed money for the new fund.
And that isnt all. The chairman of Manek Investment Management is Stanislas Yassukovich, ex-chairman of Merrill Lynch Europe. Another big name on the Manek Investments board is Crispin Money-Coutts, head of private banking at Coutts Bank.
Thats not bad for a pharmacist who got his start in the stockmarket by winning a newspaper contest. In 1994 when Manek entered the first Sunday Times stockmarket contest, he multiplied an imaginary 10 million portfolio into an eye-popping 502 million. In the process he came out ahead of a field of 40,000 which included some of Londons top professionals. (The rules of the game were that contestants started out with an imaginary portfolio of 10 million and had to multiply it by investing in listed companies.)
The next year the Sunday Times tried to stop him from entering the contest. They even offered him a column if he agreed not to take part. But Manek turned down the offer to become a newspaper pundit and again triumphed by turning 10 million into 57 million. The third year, the Sunday Times decided to scrap the contest.
Whats the secret of Maneks success? Says long-time associate Victor Farhi, of Lehman Brothers: Hes incredibly focused in everything he does.
Of course, Maneks fund isnt for everyone. He targets the small cap sector where investors must be prepared for a roller-coaster ride. But since he started managing funds for Templeton, he has always come out on top in Britain. His best bet in the last two years has been on JJB Sports, a fast-growth retailer which has soared in value.
Manek hasnt had the same Midas touch in his foray into the Indian market. Invil, which also focuses on the small cap sector, has chalked up returns of ONLY about 9 per cent. Nevertheless, Manek has clearly outperformed the weak small cap sector which is down about 30 per cent in the last one year.
And he is convinced that Invil is on to some winners. Manek has bet strongly on Crisil which he reckons has a top quality management. More recently he has started looking at bigger companies like Cadburys which have ambitious growth plans.
Of course, in recent years, Manek hasnt had much time to look after the familys pharmaceuticals business they own a chain of chemist shops scattered around suburban London. The close-knit family came to Britain after Idi Amin expelled Asians from Uganda in the early 70s. Jayeshs brother Hasu will be the administrator for the Manek Investments. For the time being, Jayesh will stay on in the modest office suite above the familys chemist shop.
Manek has always liked to do things his own way. In the last few years he has had plenty of tantalising offers from the giant investment houses. But he has always turned down these offers. The committees and investment parameters convinced me that I could not operate as I wished within an institution, he said recently.
Over the years the stock market has gradually taken over Maneks life. When he started playing the Sunday Times stockmarket game, he used to spend about two days a week poring over annual reports. But two years ago all that changed. Manek installed a Reuters terminal in his office and began spending about 70 per cent of his time on the stockmarket. A few months later he launched Invil.
Manek is launching his latest fund at a time when the UK market is trading at all-time highs. Despite the turbulence of recent months, he is confident about the future.
In recent weeks Manek Investments has been taking out giant advertisements in Britains leading dailies. The man who came first launches his first UK fund, says the blurb. But now Jayesh Manek must prove that in the real market he still has the winning touch.
The pharmacist-turned-stock picker is the toast of the city
