Vanessa Sinclair, a portfolio manager at Liontrust Asset Management, emphasizes the importance of patience in recognising a public company’s potential. Sinclair manages a hedge fund for Liontrust, a British money manager overseeing £1 billion ($2.1 billion) in assets, from London. Liontrust acquired GAM Investments earlier this year, where Sinclair was head of equity investment specialists since 2021. One example of Sinclair’s patience is US data storage company Seagate Technology, which was initially overlooked but surged in value due to the global rise of artificial intelligence and the subsequent demand for data centres. Seagate’s stock rose dramatically, becoming the S&P 500’s top performer this year at one point.
Sinclair also manages the K2 – Liontrust Select International Alpha Fund, a joint venture with Australia’s K2 Asset Management. The fund distinguishes itself by viewing technology as a horizontal force across all industries, which provides an advantage in spotting opportunities missed by sector-focused analysts. Liontrust’s long-short strategy, which has an 11-year track record, has returned an annualised average of 8 per cent since launch.
Sinclair is cautious about the valuations of big tech companies investing heavily in AI, noting concerning cross-investments that suggest overvaluation. She also holds short positions in consumer-related stocks, based on a negative outlook for low- and middle-income earners in the US, the UK, and Europe. Despite some short positions, Sinclair highlights software giant Atlassian and robotic surgery pioneer Intuitive Surgical as stocks with significant potential. Sinclair also mentions her bullish outlook on gold prices, supported by holdings in Newmont, Agnico Eagle Mines, and Barrick Mining.
Sinclair highlights Meta, formerly Facebook, as one of her biggest wins. The fund initiated a position in Facebook shortly after its launch in 2014, witnessing a tenfold increase in value. Liontrust sold its Meta position earlier this month after an 1100% total return. Sinclair and her team translate thematic ideas into actionable portfolio positions for the $40 million global alpha long-short fund, which includes a 10 per cent allocation to emerging markets.
