The Domino’s effect: Can fund managers tell a pizza from a printer?

There have been many occasions since the financial crisis that I have been led to question the calibre of the more-than-amply remunerated  ‘masters of the Universe’ who inhabit the City. But this morning brings a fresh insight into the competence of the fund managers who look after our pensions and investments. Biggest riser in the FTSE250 this morning is Domino Printing Services, a Cambridge-based company which makes machines to print barcodes and other rather dull stuff like that. It is up over 30 per cent after confirming that it has accepted a takeover from the Japanese company Brother.

Second highest riser in the FTSE250 is the rather better-known Domino Pizza Group, which has outlets on every high street. It is up over six per cent, in spite of not having announced any results today and not being the subject of any broker recommendation or any other information which ought to result in a sudden upwards jolt in its share price.

It raises the possibility: are there fund managers out there who are too stupid, drunk or pumped up on coke to notice that they are buying the wrong company?  If they can’t tell a pizza-maker from a printer maybe they should be trying a different career – although preferably not delivering pizzas, as there is no knowing what might turn up on the doorstep.