Boohoo

Boohoo, or crying all the way to the bank?

Fund managers with an ethical investment theme have reduced their holdings in Boohoo because of accusations that the cheap online retailer may not have been scrupulous in examining its supply chain. They wouldn’t, would they? You want cheap, you get cheap.

The race for the door by institutional investors, I suggest, is only partly induced by their high moral standards. Standard Life Aberdeen bought Boohoo shares when the company listed on the stock exchange five years ago and, radiating virtue, has sold almost three-quarters of its stake. Boohoo’s shares are up 900% since 2015. Seldom can a meeting between fund manager and PR person have been more harmonious and Ethics is still justh a county east of London. Obviously there is a taste of sour grapes in my mouth as last year I plumped for Marks and Spencer shares – down 50%.

Today is the anniversary of an important battle. If I may, we can be a little parochial in Ireland and so perhaps a short history lesson is in order.