Caledonia invests in Ashford-Russell's new fund

Caledonia Investments is buying a 20 per cent stake in the fund management firm being established by Brian Ashford-Russell, Tim Woolley and David Magliocco, who are leaving Henderson Investors.

Caledonia Investments is buying a 20 per cent stake in the fund management firm being established by Brian Ashford-Russell, Tim Woolley and David Magliocco, who are leaving Henderson Investors.

Caledonia is the fund formed by the wealthy Cayzer family when they sold their British & Commonwealth shipping group in the mid 1980s. Support from this bastion of the City is a feather in the cap for Mr Ashford-Russell and his two colleagues, who managed the highly successful Henderson Technology Trust and have now struck out on their own.

Mr Ashford-Russell said last month he was looking to raise up to £1.5bn to launch a specialist fund management business. The trio plan to start business early next year. Henderson Technology Trust rode the internet boom, growing at an annual rate of 67 per cent in the past three years.

Caledonia shares fell 7.5p to 807.5p yesterday, having risen 22.6 per cent this year. London-based Caledonia has a 19 per cent stake in Close Brothers, which in turn owns Winterflood Securities, the specialist small companies stockbroker.