Liontrust Asset Management’s crown has not only slipped amid the current market volatility, it now languishes with the fund management lightweight Jupiter in the eyes of investors.
Since January the shares have fallen by more than 50 per cent and a forward price/earnings ratio of just nine is the worst since the days after the pandemic and roughly half the level at which earnings expectations stood at the start of this year. A sharp derating is entirely rational.
Liontrust is hardly alone in facing weaker earnings prospects, but previously high expectations mean investors have singled out the manager for punishment. The FTSE 250 constituent had gained a reputation for attracting assets, imbuing it with a premium rating only its green-badged peer Impax Asset Management could
