To launch next Thursday (16 July), the Dublin-listed UCITS will aim to seek to identify stocks, sectors and countries that are experiencing “unpriced structural or fundamental change”.
Lead manager Cadell will run the fund alongside Kristof Bulkai and Hugo Rogers, all three of whom joined Liontrust in April having previously ran F&C’s Directional Opportunities and long/short Water and Agriculture funds.
A new addition to the team is analyst Harald Karlsson, who joined Liontrust in May from Orbis Investment Management
The new fund will be run alongside the same investment process as Directional Opportunities, which acheieved total returns of 36% during their tenure from January 2013 to May 2015.
The philosophy is that as investors are slow and reluctant to recognise fundamental turning points, markets struggle to price the long duration returns that structural change drives and change leads to uncertainty which is mispriced due to risk aversion.
While emerging markets, and China equities in particular, have suffered in recent times, Cardell said he expects to find excellent opportunities created by big dislocations in prices.
“The great thing about [China’s market volatility] is it is hitting all stocks with the same force, which will create attractive opportunities on the long side for us (in H shares) once the panic subsides,” he said.
