Introduction to Liontrust - Flipbook - Page 7
Cashflow Solution team
James Inglis-Jones formed the Cashflow Solution team on joining Liontrust
in March 2006 and was joined by Samantha Gleave in 2012.
James and Samantha jointly manage the Cashflow Solution range
of funds having first worked together in 1998 and with an average
industry experience of 25 years. James previously managed funds
at Fleming Investment Management, JP Morgan Fleming and Polar
Capital. Samantha formerly worked at Sutherlands Limited, Fleming
Investment Management, Credit Suisse First Boston and Bank of
America Merrill Lynch. Samantha was in a No 1 ranked equity
research sector team (Extel & Institutional Investor Surveys) at Credit
Suisse and won awards for Top Stock Pick and Earnings Estimates
at Bank of America Merrill Lynch.
JAMES
INGLIS-JONES
SAMANTHA
GLEAVE
Investment process
To identify companies’ annual cash flow, balance sheet development
and valuation efficiently across all equity markets the fund managers
have developed a simple screen as a starting point for further qualitative
analysis. The investment screen consists of two cash flow ratios that are
combined equally to highlight the process characteristics that they seek.
The fund managers focus on the historic cash flows generated and
invested by companies to support their forecast profits growth. As
forecasts are often unreliable, the scale of cash invested to support
forecasts is key.
The fund managers seek to own companies that generate
significantly more cash than they need to sustain their planned
growth yet are lowly valued by investors on that measure and are
run by managers committed to an intelligent use of capital.
S TA G E
1
Defining investable
universe
S TA G E
2
Primary scores
screen universe for:
Top quintile for:
Cashflow to
operating
assets
Cashflow to
market
value
S TA G E
3
• Cash flow relative to operating assets
• Cash flow relative to market value
Secondary scores
rate watchlist across
4 criteria:
S TA G E
4
Market regime
indicators
S TA G E
5
Final portfolio
30-50 stocks
evenly weighted
Momentum
Cash Return
lue
Recovering Va
lue
rian Va
Contra
Quality
MSCI Europe
c.3,000 stocks
Value
Cashflow champions
watchlist
Detailed analysis on
cashflow champions
Investor anxiety
Corporate aggression
Most attractive
cashflow champions
Momentum efficacy
Diversified portfolio
Valuations
Highly active
Liontrust investment teams and funds - 7