Liontrust GF Global Alpha Long Short Fund on Thermo Fisher Scientific Inc.
Thesis
Thermo Fisher Scientific was a positive long-book contributor in the quarter. The manager attributes the improvement to stronger investor sentiment toward life-science tools and expectations for stabilising end-market demand. Thermo Fisher also fits the portfolio's barbell approach of owning healthcare businesses whose earnings are not predicated on the AI-infrastructure buildout. The case depends on continued stabilisation rather than an AI-driven sector rerating.
“expectations for a more stable demand environment.”
Key risks
- Rising bond yields can depress equity valuations, especially for longer-duration growth businesses.
- The manager warns that inflation, energy prices and interest rates could quickly dominate equity sentiment if the AI trade weakens.