Sisu owners prosper
Coventry City may now be playing in Northampton, but the owners of the SISU Capital hedge fund are doing reasonably well, according to a recent issue of Private Eye.
Recently filed accounts for SISU Capital show that chief executive and major shareholder Joy Seppala shared with Dermot Coleman £359,432 during 2013 in drawings from their limited partnership interests, compared with £139,000 in 2012 and £145,000 in 2011.
Admittedly, these are not huge sums by the standards of the financial services industry. However, SISU has encountered choppy waters. There has been an increase in redemptions from SISU hedge funds, as also happened in 2011. During 2012, management fees fell because the value of the funds dropped. SISU's funds and earnings by Seppala and Coleman are much reduced since 2007, the year SISU took over the Sky Blues.
It is conceivable that outside investors in the SISU-managed ARVO Master Fund have not been impressed by the sequence of events at Coventry City which again raises the question, why don't SISU cut their losses? When you are in a hole, stop digging.
ARVO is still backing the latest owners, Otium Entertainment Group, with a charge over its shares in the club registered last month and signed by Seppala as an ARVO director. But then Otium is in turn controlled by a Cayman limited partnership managed by SISU.
Disgruntled Sky Blues fans have been eager to meet Seppala to express their concerns about SISU's stewardship of the club, but she has many commitments, including membership of the City Takeover Panel. This body exists to ensure fair treatment for shareholders, but there is no equivalent body for football fans.