Caledonia Investments

Caledonia Investments

Caledonia Investments plc (LSE: CLDN) is a UK investment trust company based in London and is listed on the London Stock Exchange. The company was listed on the LSE in 1960, and became known as Caledonia Investments plc in 1981. It actively invests in 30-40 companies at any one time. James Loudon, whose son Alex is dating Pippa Middleton, is the Chairman and Will Wyatt the Chief Executive.

The firm's net asset value per share declined by 9% from March 2011 to March 2012.

As of March 2012, the net value of assets under management was £1.26 billion.

Following the very disappointing performance in 2011, when the market fell just 5.5% compared to Caledonia's 9% fall, the two Old Etonian management duo of Loudon and Wyatt announced a turnaround plan, given their woeful performance. This included increasing the dividend and refusing to invest in assets worth less than £20 million.

The Financial Times wrote of the general investor disbelief of the two old posh gentlemen being able to turn this around, noting: "There is as yet little evidence that the new plan is working, as it continues to lag its benchmark".

The FT article concluded that Caledonia Investment was "not an investment for the faint-hearted"; indicating that very few investors believe that this duo can beat the market (given they have failed to do so in most prior years, then fell more aggressively than the FTSE 100 in 2011).