GAM Alternatives Fund managers call on Liontrust Asset Management to commence immediate strategic review

Core Viewpoint - Activist investors Albert Saporta and Randel Freeman are urging Liontrust Asset Management PLC to initiate a strategic review aimed at selling the company due to significant undervaluation and misaligned executive compensation [2][3][10]. Financial Performance - Liontrust's share price has declined approximately 85% from its peak in September 2021, and assets under management (AUM) have fallen from £42.3 billion to around £22 billion, representing a valuation of only 0.68% of AUM [3][6][7]. - The company's share price performance is reported to be the worst among major UK fund management companies during this period [6]. Executive Compensation - CEO John Ions has received nearly £40 million in total compensation since 2010, with £17 million in the last five years, which is considered excessive for a poorly performing small-cap company [7][8]. - The combined compensation of the CEO and CFO amounts to approximately 40% of Liontrust's current market capitalization [8]. Strategic Missteps - The current leadership is criticized for failing to articulate a credible strategy to reverse the company's decline, with a focus on the UK retail market and ESG strategies while lacking a robust alternatives product offering [10]. - The management's past acquisitions have not retained key employees, leading to significant value destruction, with around £280 million spent on acquisitions since 2011, nearly double the current market capitalization [8][10]. Call for Action - The letter from the activist investors emphasizes the need for Liontrust to commence a strategic review and consider selling the company, as it is no longer positioned to act as a serious consolidator in the fragmented asset management industry [10][11].