Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 50
ECONOMIC ADVANTAGE TEAM
INVESTMENT BELIEFS
QUICK FACTS
A fundamental principle of competitive markets is that profits
regress to the mean.
Funds managed by this team equate to approximately 24.9%
of Liontrust’s AuMA (as of end December 2022)
Profitable industries attract new entrants who act to drive
prices down and take away market share.
Six-strong investment team led by Anthony Cross
Over the last 20 years, the amount of competition faced by
many companies has increased, driven by factors such as
the deregulation of markets, the removal of trade barriers,
easy access to capital and advances in technology and
communication.
The secret to successful investing is to identify those few
companies that have a durable competitive edge (an
“economic advantage”) which allows them to defy industry
competition and sustain a higher-than-average level of
profitability for longer than expected. This surprises the market,
and leads to strong share price appreciation.
Team has a long track record of successfully identifying
companies with strong economic advantage. This has
delivered strong relative performance and unusual consistency
in a variety of market conditions for investors.
Investment process origins date back to 1998
ENGAGEMENT
The Economic Advantage team engages its holdings on
factors material to the team’s investment process.
MORE INFORMATION
Available at: https://www.liontrust.co.uk/fund-managers/
economic-advantage
50 - Responsible Capitalism Report 2022