Liontrust GF Global Alpha Long Short Fund on Nu Holdings Ltd.
Thesis
Liontrust purchased Nu Holdings Ltd. as it recycled capital toward financial-services opportunities. The position provides exposure to the digitisation of financial services. The managers expect improving market activity and continuing digitisation to support financial-sector growth. They describe the group of additions as offering attractive long-term growth prospects, while reducing some previous financial holdings to fund the changes.
“improving market activity, ongoing digitisation of financial services and attractive long-term growth prospects.”
Key risks
- A deterioration in market activity would weaken the earnings opportunity described by the manager.
- Bond-yield volatility, persistent inflation and elevated energy prices could pressure global equity markets.