Liontrust sold

I sold my holding in Liontrust Asset Management for a 15% profit, following publication of their full year results.


I had a few reasons for selling:

  • Despite the growth in AuM, there was somewhat uninspiring growth in revenues (15%) from what I was anticipating and a big fall in performance fee related revenue (though I don’t fully understand the cause of the latter – it could just be quite lumpy).
  • A very big increase in share options payments caused a fall in profits (adjusting for this profits rose). These payments are lumpy in nature but nevertheless I was a bit put off by the magnitude of the increase.
  • The degree to which Liontrust returns are likely to be correlated to the performance of the wider UK market. The increase in volatility in the market this week has made me become more cautious about this.

In the end the share price didn’t really react to these results, a bit to my surprise. I take this as an early indication that I could be wrong to have sold. The valuation does still look cheap, given the overall fairly positive tone to the RNS but I was keen to raise some cash given the current market volatility. More widely a few holdings are looking a little shaky, including Fevertree, Burford and XP Power, so my finger is hovering over the sell button on these too.

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