Portfolio managers at GAM Alternatives have called on Liontrust Asset Management to launch an immediate strategic review, including a potential sale of the business, arguing the company is materially undervalued.
In an open letter addressed to CEO John Ions, investors Albert Saporta and Randel Freeman – who manage the GAM Global Opportunities and Global Special Situations funds – outlined concerns over Liontrust’s performance and strategic direction.
The letter highlights a steep decline in Liontrust’s share price, down 85% from its 2021 peak, alongside a significant reduction in assets under management from £42.3bn to around £22bn. The managers argue this has left the firm trading at a substantial discount, with its valuation equating to just 0.68% of AUM.
Saporta and Freeman contend that current leadership has yet to present a convincing plan to reverse the downturn and suggest that a sale process could better realise shareholder value, particularly given ongoing consolidation across the UK asset management sector. They also raise concerns around executive pay alignment.
The pair, who bring decades of experience in event-driven and special situations investing, have a history of activist engagement. Previous campaigns have included interventions at Yutaka Giken and SBI Holdings, where they pushed for improved shareholder outcomes and governance reforms.
Their latest move adds to mounting pressure on listed asset managers facing sustained outflows, fee compression and increased scrutiny from activist investors seeking to unlock value.
