Rolls Royce could be headed for a “turnaround” in its fortunes, thanks to further investment from American hedge fund ValueAct.
David Stubbs, a global market strategist at JPMorgan Asset Management believes that the activist fund, which on Thursday increased its stake in Rolls Royce to around 10%, could help the company weather a “turbulent time” for the engineering company.
Speaking to BBC Radio 5 Live on Friday morning, Stubbs was asked about ValueAct’s involvement in the company, and rumours of a potential breakup in Rolls Royce as the company comes under pressure from some corners to sell of its marine unit.
He said: “I think its a turbulent time for the industry, but ultimately I think an activist investor getting involved could well be part of a turnaround, whether its a breakup or not.”
