Liontrust UK Opportunities Fund on Jadestone Energy plc
Thesis
Liontrust holds Jadestone, an oil and gas producer focused on South-East Asia. The fund regards the proposed purchase of a 28% stake by PT Prima Petroleum Energi at a significant premium as third-party validation of the attractiveness of Jadestone's assets. The transaction helped shares rise roughly 30% in the quarter. The manager acknowledges uncertainty about what the new strategic shareholder intends to do over the longer term.
“this purchase demonstrates the attractiveness of Jadestone’s assets.”
Key risks
- The prospective major shareholder’s longer-term intentions are uncertain.
- The managers expect longer-term oil-price downside if geopolitical pressures ease.