Not too long ago, shareholders in Reinet Investments might have wished for a better balance to the Rupert family-controlled company’s portfolio. Reinet, despite its ongoing attempts at diversifying its investment base, has largely been seen as a proxy for its largest investment, British American Tobacco (BAT). But right now shareholders can survey a far more equitable spread of investments in Reinet — although the manner in which this new balance was achieved was not triggered by inspired deal-making. Rather, Reinet’s investment portfolio has been radically reshaped by the steady decline in BAT’s share price over the past six months. In the past few weeks particularly, BAT has taken a beating on news that the US Food and Drug Administration is mulling a ban of menthol cigarettes in the US. Over the past three months, Reinet’s share price has fallen 21%. Electus Fund Managers co-head Neil Brown says this is entirely because BAT has fallen dramatically — by 38% in the past three month...

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