LIONTRUST EUROPEAN ABSOLUTE RETURN - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	–
	High yield bonds	–
	Quality bonds	–
	Property	–
	Commodities	–
	Hedge	100%
	Fund cash	–

Allocation		Proportion
	UK	30%
	Europe	70%
	Nth America	–
	Japan	–
	Pacific	–
	Other Equity	–

Allocation		Proportion
	Large Caps	80%
	Mid Caps	15%
	Small Caps	5%

View all performance data for LIONTRUST EUROPEAN ABSOLUTE RETURN

Investment process

The process is one developed by James Ignis-Jones and Gary West, who first started working together at JPM Flemings around the turn of the millennium. They subsequently went to Polar Capital together before joining Liontrust.
The core belief of the fund is that forecasting company profits is exceeding difficult. Both analysts and company management are subject to behavioural biases when making predictions about future earnings. Often the analysts do little more than follow company guidance and financial statements are often massaged to confirm these expectations.
The managers therefore focus on cashflows as these are generally harder to massage. They conduct a forensic examination of a companies report and accounts. These are typically published towards the end of the calendar year and the stocks purchased are typically held for a 12 month period as the managers believe that stock momentum takes such a period to materialise. The mangers can make changes as and when circumstances change although they do not react to macro changes but for company specific reasons.
The process for selecting the short book is simply the opposite to selecting the long.