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Key takeaways
- European equities posted modest gains in November, with market leadership rotating towards healthcare and financials.
- Both the long and short books contributed positively to performance.
- Top long-book performers in November included Games Workshop, which signalled a strong first half with rising sales and profits, and ArcelorMittal, which advanced on expectations that stronger European policy support will bolster the steel sector.
Performance
The Fund’s A4 share class returned 1.8%* in euro terms in November. The Fund’s comparator benchmarks, the MSCI Europe Index and HFRX Equity Hedge EUR Index, returned 0.9% and -0.1% respectively.
Commentary
European equities posted modest gains in November. The month was marked by sharp swings in sentiment with markets surging early on, led by financials, on relief around the US government shutdown and solid earnings expectations. However, volatility picked up mid-month amid concerns over stretched valuations in AI-linked technology stocks.
European markets were led by strong performance from healthcare (+5.4%) and financials (+2.9%), alongside solid contributions from consumer staples (+2.5%), utilities (+2.3%), energy (+1.5%), materials (+1.4%). The weakest segments were communication services (-2.8%), industrials (-2.9%) and technology (-4.0%).
Both the long book (c.108% of Fund NAV) and short book (c.34%) contributed positively to performance over the period, helping the Fund outperform the benchmark.
Within the long book, Games Workshop, the manufacturer and retailer of tabletop war-game systems and fantasy miniatures, signalled a strong first half, with both sales and profits set to increase. In a trading update, the company announced estimated revenues of at least £310 million for the six months to November, up 15% from £269 million a year earlier. Pre-tax profit is expected to reach around £135 million, compared with nearly £127 million in the prior period.
ArcelorMittal advanced after noting that increased European policy support for the steel sector is set to bolster performance next year and over the medium term. The company expects a cumulative uplift of around $2.1 billion in EBITDA over the coming years, with approximately $700 million in 2025 and $800 million in 2026.
French construction and concessions company Eiffage rose after reporting strong Q3 results, with sales exceeding forecasts, driven by solid performance in its Contracting division, 7% order-book growth, and a confirmed full-year revenue outlook.
Within the short book, positive contributors included a digital infrastructure and computing services company which declined sharply after announcing plans to issue a sizeable multi-year convertible bond, with investors reacting negatively to the proposed terms of the offering. Elsewhere, a semiconductor materials manufacturer weakened after issuing third-quarter revenue guidance below market expectations, reflecting continued softness across key end markets.
Long book detractors included Auto Trader, which fell after a covering analyst downgraded the stock, citing growing competitive and operational pressures as the advertising sector adapts to rapid developments in AI. Belimo shares also fell after a broker cut its price target and reduced earnings estimates, citing more pronounced margin headwinds.
Discrete years' performance (%) to previous quarter-end**:
| Sep-25 | Sep-24 | Sep-23 | Sep-22 | Sep-21 |
Liontrust GF European Strategic Equity A4 Acc EUR | 2.9% | 14.7% | 3.7% | 29.2% | 36.8% |
MSCI Europe | 9.3% | 18.8% | 19.2% | -11.0% | 28.8% |
HFRX Equity Hedge EUR | 6.6% | 9.5% | 2.5% | -4.0% | 16.5% |
| Sep-20 | Sep-19 | Sep-18 | Sep-17 | Sep-16 |
Liontrust GF European Strategic Equity A4 Acc EUR | -14.9% | 3.0% | 2.6% | 5.2% | 0.7% |
MSCI Europe | -7.8% | 5.7% | 1.5% | 16.3% | 1.8% |
HFRX Equity Hedge EUR | -2.4% | -3.5% | -1.1% | 5.8% | -1.3% |
*Source: Financial Express, as at 30.11.25, total return (income reinvested and net of fees).
**Source: Financial Express, as at 30.09.25, total return (income reinvested and net of fees). Investment decisions should not be based on short-term performance.
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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 will 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’s volatility limits are calculated using the Value at Risk (VaR) methodology. In high interest rate environments the Fund’s implied volatility limits may rise resulting in a higher risk indicator score. The higher score does not necessarily mean the Fund is more risky and is potentially a result of overall market conditions.
- 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 may encounter liquidity constraints from time to time. The spread between the price you buy and sell shares will reflect the less liquid nature of the underlying holdings.
- 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.
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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.
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