Liontrust Asset Management Share Discussion Threads

[aishah] 21/6/2023 09:54

Yes. I have added a unit here. Ex-div next week, yield is higher than its p/e ratio

Passes two of Stockopedia’s bullish stock screens: the Philip Fisher Growth Screen and the Free Cash Flow Cows Screen.

[encarter] 21/6/2023 07:50

Results as expected and they held the divi. Hopefully a steady rise from here.

[encarter] 20/6/2023 16:19

It's possible that they will cut the divi.

[r2oo] 17/6/2023 13:32

Pretty well invested in Lion already but I am tempted to back the truck up at these levels!

[stevenlondon3] 23/5/2023 09:03

Issued today by GAM.
23 May 2023
SENIOR PORTFOLIO MANAGERS AT GAM INVESTMENTS SUPPORT THE UNANIMOUS RECOMMENDATION BY GAM HOLDING AG BOARD OF THE OFFER FROM LIONTRUST ASSET MANAGEMENT PLC
Senior portfolio managers at GAM Investments have made it clear that they strongly support the decision by the GAM Holding AG (“GAM”) Board of Directors to recommend the offer from Liontrust Asset Management Plc (“Liontrust221;) for all shares in GAM on the basis that they believe this to be in the best interests of GAM clients. This statement has been made through a letter sent by the senior portfolio managers to the Board in response to the news stories in which various sources have challenged the offer for GAM by Liontrust.

In the letter the senior portfolio managers state that “it is our view that an industry sale to a highly regarded peer with a heritage in fund management, a strong track record of acquisitions and integrations and consistently strong profitability is in the best interests of GAM clients.”

“We believe there is a cultural alignment between GAM and Liontrust, and this will provide the environment and support to enable the investment teams to focus on their clients’ best interests.”

“Liontrust has a clear vision for the future, with a focus on investment and wealth management only, and an impressive strategy for how to grow the enlarged company. This strategy importantly includes a commitment to developing the business in Switzerland and GAM’s global presence.”

“The proposed acquisition by Liontrust is highly credible and has our strong support.”

[2wild] 23/5/2023 08:17

We are a long way off any completion.. as long as we don't end up in a bidding war with somebody else, I'm not concerned if a deal completes are not.

[luckymouse] 23/5/2023 04:52

There was a historical study done on M&A: If the buyers share price initially dropped upon deal completion, if boded badly for the mergers success, & if the share price rose it boded well - statistically. That was likely biased in America where mkt performance is notably superior & liquidity is x10, so more telling. In the UK I doubt it works as well as the sheer weight of volume doesn't exist.
That said the share price does indicate either the deal, the co, the AMgt sector, or the UK mkt itself isn't healthy - or some combination.
Since Nov21 when the fed started the fastest raise in living memory, plus the commencement of Bashonomics (negative fed speak), breadth has been almost entirely negative. These factors have predominantly resulted in only the very largest & strongest stocks rising from the Oct 22 low, and beyond that, esp in the Smalls space, the crowd has been successfully scared away - and this of course has an impact on Asset mgrs..
Firstly in terms of dwindling remittances, plus the cost of living, Brexit & unstable geopolitics all driving up redemptions (raising cash & necessity). Add the fact that constant -ve breadth also exposes 90% of PMs to be merely thematic trackers - ie they cannot outperform, in such an environment their fund/IT charts will look generally like a chop fest or simply decline. Negative breadth essentially is their undoing.
There is 9% yld on offer, but I doubt the share price will rise much until the crowd return eg when the fed cease special operations. The BOE lag by 6m too - so don't hold your breath. The merger may in part be a strategy to mitigate some the above hostile environment ie a band aid & expensive way to bolster AUM, hence the reaction

[dealy] 19/5/2023 13:18

I think it just went down with hundreds of other small caps in the wake of the US Regional banking crisis

[trident5] 19/5/2023 11:57

Interesting that the slide from £12 to £8 has knocked £240m off Liontrust's valuation, seemingly largely based on the execution risk of a £100m takeover.

[stevenlondon3] 19/5/2023 11:09

If it was such gift I don't think the share price would have reacted so negatively. There is potential but the market has concerns that Liontrust has the skill to turn GAM around. Along hot summer ahead.

[r2oo] 18/5/2023 09:05

Just goes to show what a gift this acquisition would be if it comes off!

[r2oo] 18/5/2023 09:04

The investor group comprised of NewGAMe and Bruellan - which is opposed to Liontrust's takeover of Swiss fund group GAM - said on Tuesday that it plans to increase its stake in GAM from 8.4% to above 10%.The group said in a statement that it has notified the Swiss Financial Market Supervisory Authority (FINMA) that it intends "to go above the threshold of 10% of the voting rights in GAM".Earlier this month, the investor group said Liontrust's £96m takeover offer undervalues GAM and "does not reflect the significant upside that a successful turnaround could generate for GAM's current shareholders"."In addition, the fact that Liontrust only offers its own shares, and is not making any cash offer, implies that GAM shareholders will be subject to the volatility of Liontrust shares without any firm price for a business that has significant intrinsic value," it said.The investor group also said the deal proposed by Liontrust was subject to "significant execution contingencies", since the risk of an unsuccessful exit of GAM's fund management services business in Luxembourg and Switzerland - "on which almost no information is being provided" - is being shifted to GAM shareholders."The investor group is therefore contemplating not to accept Liontrust's offer under the current terms," it said.

[dealy] 05/5/2023 09:09

This drops on the prospect of a gift acquisition deal and rises on the prospect of that gift deal being rejected. Talk about lack of ambition by investors

[topvest] 04/5/2023 14:29

A very interesting and transformational deal either to the upside (if it works) or to the downside (if its doesn't). The deal price is only 0.5% of AUM which is very cheap. This reflects the fact that GAM are in deep financial distress. If the best GAM fund managers stay and they can reduce costs then it will be a truly fantastic deal. The market probably doesn't like the uncertainty associated with the considerable execution risks. I may top-up my Liontrust holding, but will ponder the deal further.

[r2oo] 04/5/2023 12:49

This is still very cheap, just may well get a bit cheaper.I'm already heavily invested here but I have my finger on the trigger ready to load up more.

[r2oo] 04/5/2023 12:47

Won't matter too much spawny, if you're a long term investor.

[spawny100] 04/5/2023 11:12

Darn it I bought a few early doors here. Too early it seems!

[r2oo] 04/5/2023 09:10

Bit of support here at 820p then it's back down to the 52 week low of 700p...

[r2oo] 04/5/2023 09:08

Hopefully the market will hate it so I can back up the truck. Been waiting for an entry point to top up this holding.

[dealy] 04/5/2023 07:57

it's an absolute steal. GAM capitulated here. Because it's an all share deal the board of GAM probably think Liontrust shares will benefit hugely from this combination

[tongostl] 04/5/2023 07:41

Let's see what the market thinks. But this looks like a bargain to me.

[trident5] 03/5/2023 16:31

Do their funds perform?

[dealy] 03/5/2023 16:07

GAM made one minor error about 5 years ago and has been punished ruthlessly by the press and investors ever since. The company is currently valued below net cash and has made great progress in reducing costs over the last 3 years. There are substantial cost and market synergies to be gained from a merger. I fully expect Liontrust to step up and size this once in a decade opportunity

[2wild] 26/4/2023 21:36

Brought a few with an initial purchase at 825p. If they maintain the dividend, I will be happy.