Liontrust UK Opportunities Fund on Savills plc
Thesis
Liontrust opened a position in Savills plc during Q3. The managers describe the business as having a solid franchise but suffering from the recent rise in interest rates. They expect trading conditions to improve over an 18-month view. Because the fund already has considerable rate sensitivity, they say the new holding was sized appropriately rather than aggressively.
“on an 18-month view, we think both should be enjoying better trading conditions.”
Key risks
- Recent higher interest rates have already hurt trading conditions.
- The fund has meaningful aggregate interest-rate sensitivity, leaving the recovery dependent on the rates backdrop.