Hubbard investors told to find lawyers
Investors in Hubbard Management Funds will be up for substantial costs if they decide to appeal a High Court decision on how to divide the $44 million of assets in the fund.
A good number of investors may be unhappy with the court's decision to accept an argument put by the estate of the late Allan Hubbard that Hubbard ran the fund as a "pool" of investments.
Two other proposals on division of the assets were put to the court: one also a "pool"; while the statutory managers of the fund argued the fund was a collection of individual portfolios and the division should be based on that.
The statutory managers have written to about half of the investors - about 150 - who they believe are disadvantaged by the method the court has chosen, advising them to seek legal advice on their position.
Stephanie Grieve of law firm Duncan Cotterill said no decision had yet been taken by investors to go to appeal.
Some were investigating the possibility but it was not confirmed how many wanted to do that.
Asked about the cost to investors of taking an appeal, Grieve said that depended on who was instructed to take the case and their seniority was one factor.
"The cost of an appeal will be significant given it's the Court of Appeal and the complexity of the issue," she said.
- Fairfax Media