Shares in the European Opportunities Investment Trust have rebounded as it confirms it disposed of its entire stake in Wirecard on the day the company revealed €1.9bn in accounting anomalies.
A regulatory filing on Friday morning revealed the disposal and shares in the investment trust were up 5.8% by lunchtime.
Alexander Darwall’s investment trust had taken a hammering the previous day, falling 11.6% by close of trading due to its holding in Wirecard, which represented a 10.3% weighting, according to the last factsheet.
The German company’s auditor did not sign off its accounts because it could not confirm the existence of €1.9bn (£1.7bn) in cash balances. Shares in the business fell 61.8% on Thursday. By Friday lunchtime, they had fallen a further 35.7% and chief executive Markus Braun had resigned due to the crisis.
The European Opportunities Investment Trust is the only portfolio in the Association of Investment Companies universe to hold Wirecard in its top-10 positions, according to FE Fundinfo. Only one fund in the Investment Association holds Wirecard, the Barings German Growth Trust, which has a 3.32% weighting, according to FE Fundinfo.
One person profiting from the company’s fall is Barry Norris, fund manager of the Argonaut Absolute Return fund. Wirecard is the fund’s biggest short position and Norris claims the company could be insolvent by the weekend.
