Blue Planet Investment Management, an asset manager that specialises in financials stocks, has bought a stake in London-based New Star Asset Management despite its impending delisting and the dilution of its shares, arguing that the business is substantially undervalued.

Blue Planet has bought a 6.7% stake in New Star through its investment trusts, according to a regulatory news statement released in the UK yesterday. Chief executive Ken Murray said that the stake is now higher, but declined to reveal the figure.