Americans boost stake in Advantage

By FIONA ROTHERHAM

Quantum Emerging Growth Fund, set up by renowned American hedge-fund investor George Soros, has raised its stake in listed technology company Advantage to around 7.5 per cent.

The Quantum fund has bought 1.5 million new shares at $3.45 a share, a 16c discount on yesterday's market price. Late last year the fund purchased over 5 per cent of Advantage shares, some from director Nick Gordon and the rest from Royal Sun Alliance.

Another US fund, the Kingdon Capital Management fund, has also taken 1.5 million new shares at the same purchase price as Quantum.

Kingdon was introduced to Advantage by Soros managing director David Kowitz.

As expected, Advantage is keen to trumpet the investments in a bid to attract further US funds and boost its share price.

"In terms of people I'd like to see investing in Advantage, I can't think of any I would rather have investing in us," said Advantage chief Greg Cross. He is in New York and has spent a lot of time since he took on the chief executive role selling the company's story to US capital fund managers.

He claimed that one other US investment fund was holding slightly under 5 per cent of the company, just under the level at which it is forced by stock exchange rules to disclose its interest.

"This investment reflects a growing awareness within the US investment community that the stock is well priced by comparison with other analogue companies in the United States."

The $10 million raised in the latest placements is tagged for other e-commerce acquisitions.

It says it has spent around $35 million on acquisitions in the past year under its "get big fast" motto.

Forty to 45 per cent of its revenue is offshore based.

The share price has leaped from under $1 a year ago to above $4 in December. It rose 4c yesterday to close at $3.61.