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It is ironic that Baltimore, the former tech darling which survived a potentially fatal legal claim from a supplier and a high profile boardroom power struggle, has re-emerged as an activist investor and corporate turnaround specialist.
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Tim Lovell, who now runs Baltimore, insists that all of the company's former woes are behind it. His aim now is to invest in poorly performing small listed companies with a view to influencing the management. Eventually, Mr Lovell hopes to run investment funds using his activist style, rather than investing via Baltimore's own balance sheet. He also intends to set up a turnaround business to advise larger companies facing problems. The latter business will be run by chairman David Buchler, who is also in charge of trying to extract something out of the remnants of collapsed cash shell Langbar.
These aims are all very laudable and worthy, but it's hard to see a reason to invest in it right now. Baltimore owns stakes in three UK quoted companies - CSS Steller, Tinopolis and Nettec. If you like their prospects, you can invest in their shares directly. By buying Baltimore, you're investing in the skills of Mr Lovell and Mr Buchler. The former points to a successful track record which saw Acquisitor (his former vehicle) complete 31 transactions in five years, losing money on just three of them. But, although he's not keen to discuss it at any length, Acquisitor's track record also includes a £300,000 investment in Langbar.
If you like the turnaround prospects of Baltimore's current investments, buy them directly. Baltimore itself is an interesting prospect, but it may be worth waiting until its track record consists of something more solid than a colourful corporate history.
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