Knight Vinke Asset Management sold its stock in UBS Group AG as the activist fund, led by Eric Knight, said it remained concerned about the size of the Swiss company’s investment banking arm.
“Our concerns about UBS’s exposure to investment banking remain, especially in current market conditions, and we continue to monitor the situation,” New York-based Knight Vinke said in an e-mailed statement. The position was sold toward the end of last year at a “substantial gain,” it said. A spokesman for the fund declined to comment on the size of the stake.
Knight Vinke started advocating that UBS spin off its investment bank in an open letter to management in 2013. While UBS Chief Executive Officer Sergio Ermotti has pledged to emphasize wealth management over the securities unit, the Zurich-based lender lifted its cap on risk-weighted assets at the investment bank in the months leading up to Knight Vinke’s sale.