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View NowPast performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.
- The Fund’s consumer discretionary names led August’s largest contributors, while Chinese holdings Alibaba and Full Truck Alliance also posted solid gains.
- Vestas Wind Systems added after recent US renewable energy legislation was more favourable than anticipated, allowing investors to focus on Vestas’s strong fundamentals and operational improvements.
- With concentration risk, valuation and profit margins all sitting at record high levels, we continue to believe that stock selection outside of mega caps will become increasingly important
The Liontrust Global Alpha Fund returned 0.6% in August, compared with the 0.4% return of the MSCI ACWI Index comparator benchmark and the 0.3% average return in the IA Global sector (also a comparator benchmark).
Portfolio review
The largest contributions in August came from some of the Fund’s consumer discretionary holdings including Alphabet (+8.7% in sterling terms), Shopify (+13%), Trip.com (+17%) and Expedia (+17%). Alphabet remains one of our favourite under-appreciated Magnificent Seven names, which performed strongly after a federal judge ruled that Google would not be forced to sell Chrome, the source of a significant overhang for the stock.
Chinese holdings Alibaba (+9.6%) and Full Truck Alliance (+11%) also contributed strongly as China benefitted from a further 90-day pause to US tariff implementation.
On the negative side, Coinbase (-21%) gave back some of its strong gains from June and July following a lacklustre set of results. We trimmed the position but maintain it as our core crypto-related holding.
Portfolio Changes
A new position in Vestas Wind Systems was added to the portfolio in the month. Vestas is well-positioned to benefit from a significant policy-driven tailwind following a better-than-expected outcome from recent US renewable energy legislation. Updated guidance on tax credits under the Inflation Reduction Act proved far more favourable than anticipated, extending eligibility and easing compliance requirements, which has already renewed confidence in US order momentum. With a robust €67.3 billion backlog, including a high-margin service segment targeting 25% operating margin by 2026, and a growing US footprint to capture accelerating demand, Vestas combines strong fundamentals with operational improvements that support margin expansion. The removal of regulatory uncertainty in one of its largest markets transforms a key risk into a powerful growth catalyst, positioning Vestas for sustained profitability and long-term value creation.
Outlook
We believe the outlook for the rest of 2025 offers an exciting opportunity for active management and alternative equity strategies; with concentration risk, valuation and profit margins all sitting at record high levels over many years, it is clear that overall equity returns are going to be harder to achieve.
Our base case is that equity markets globally remain little changed in the second half of 2025 but that the polarisation of winners and losers will remain significant. For the first time in many years, stock selection outside the very biggest companies in the world will matter, as will geographical diversification. In this environment, the overall market returns matter less, but we worry that many will remain stranded in the trades that led the last ten years rather than those that will lead over the next ten.
Thematically, we remain positive on the potential for AI to drive significant benefits across all industries. We continue to believe it is best to focus on identifying winners in AI use cases, rather than invest in the infrastructure providers that run a risk of running into a capacity glut.
We have waited patiently for the crypto world to unfold and the IPO of Circle Internet could act as a Chat GPT moment for Stablecoins. This will benefit the entire blockchain/crypto supply chain and, together with fintech, remains a key theme for the rest of this year.
Discrete years' performance (%)* to previous quarter-end:
| Jun-25 | Jun-24 | Jun-23 | Jun-22 | Jun-21 |
Liontrust Global Alpha C Acc GBP | 7.7% | 19.2% | 7.5% | -25.0% | 33.0% |
MSCI ACWI | 7.2% | 20.1% | 11.3% | -4.2% | 24.6% |
IA Global | 4.6% | 14.9% | 10.8% | -8.8% | 25.9% |
Quartile | 1 | 2 | 4 | 4 | 1 |
* Source: FE Analytics, as at 30.06.25, total return, net of fees and income reinvested.
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KEY RISKS
Past performance does not predict future returns. You may get back less than you originally invested.
We recommend this fund is held long term (minimum period of 5 years). We recommend that you hold this fund as part of a diversified portfolio of investments.
- Overseas investments may carry a higher currency risk. They are valued by reference to their local currency which may move up or down when compared to the currency of the Fund.
- The Fund, may in certain circumstances, invest in derivatives but it is not intended that their use will materially affect volatility. Derivatives are used to protect against currencies, credit and interest rate moves or for investment purposes. The use of derivatives may create leverage or gearing resulting in potentially greater volatility or fluctuations in the net asset value of the Fund. A relatively small movement in the value of a derivative's underlying investment may have a larger impact, positive or negative, on the value of a fund than if the underlying investment was held instead. The Fund invests in a diversified defensive securities strategy.
- Credit Counterparty Risk: the Fund uses derivative instruments that may result in higher cash levels. Outside of normal conditions, the Fund may choose to hold higher levels of cash. Cash may be deposited with several credit counterparties (e.g. international banks) or in shortdated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash.
- Liquidity Risk: the Fund will invest in smaller companies and may invest a small proportion (less than 10%) of the Fund in unlisted securities. There may be liquidity constraints in these securities from time to time, i.e. in certain circumstances, the fund may not be able to sell a position for full value or at all in the short term. This may affect performance and could cause the fund to defer or suspend redemptions of its shares.
- Emerging Markets Risk: the Fund may invest in emerging markets which carries a higher risk than investment in more developed countries. This may result in higher volatility and larger drops in the value of the fund over the short term.
- ESG Risk: there may be limitations to the availability, completeness or accuracy of ESG information from third-party providers, or inconsistencies in the consideration of ESG factors across different third party data providers, given the evolving nature of ESG.
The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.
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This material is issued by Liontrust Investment Partners LLP (2 Savoy Court, London WC2R 0EZ), authorised and regulated in the UK by the Financial Conduct Authority (FRN 518552) to undertake regulated investment business.
It should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets.
This information and analysis is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content, no representation or warranty is given, whether express or implied, by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
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