Liontrust GF Global Alpha Long Short Fund on Baker Hughes Company
Thesis
Liontrust added Baker Hughes Company within its infrastructure and grid-technologies themes. The managers are seeking structural opportunities associated with infrastructure while making the portfolio less dependent on a narrow set of software and AI equities. At the portfolio level they favour companies with improving earnings, durable competitive positions and long-term growth potential. They also emphasise that infrastructure exposures must be evaluated for hidden dependence on the AI capital-spending cycle.
“We added Baker Hughes and nVent Electric within our infrastructure and grid technologies themes.”
Key risks
- Higher long-dated yields can pressure capital-intensive company valuations and financing costs.
- The manager warns that some industrial and utility exposures depend heavily on the continuation of AI capital expenditure.