Liontrust a high beta bet, says Ashworth-Lord Liontrust Asset Management (LIO) has been consistently undervalued by the market, says Sanford DeLand’s Keith Ashworth-Lord.13 Jun 2024 12:14
Liontrust a high beta bet, says Ashworth-Lord
Liontrust Asset Management (LIO) has been consistently undervalued by the market, says Sanford DeLand’s Keith Ashworth-Lord.
Ashworth-Lord holds the Citywire Elite Companies + rated asset manager in his £499m CFP SDL UK Buffettology fund.
In his latest fund factsheet, the manager said Liontrust has ‘seen a material derating spanning several years to the point where, until recently, it was valued at not much over 1% of its assets under management, adjusting for its substantial cash pile.’
Although there was little news about the group in May, it has benefited from the recent recovery in sentiment towards UK equities, which ‘leaves it particularly primed for recovery’.
Ashworth-Lord said although it is unrelated, the recent takeover bid for investment platform Hargreaves Lansdown ‘will not have gone unnoticed’.
‘To use stock market jargon, Liontrust is about as high a beta stock as you could wish to own,’ he said.
The shares rose 1.8% to 774p on Wednesday and have jumped more than a quarter in the year to date.