The Economic Advantage Process | Liontrust Asset Management PLC

Meet the team

The award-winning Economic Advantage team have an average industry experience of 21 years. Anthony Cross joined Liontrust from Schroders in 1997 and was joined by Julian Fosh in 2008. Julian had previously managed funds at Scottish Amicable Investment Managers, Britannic Investment Managers, Scottish Friendly Assurance Society and Saracen Fund Managers. Victoria Stevens and Matt Tonge joined the team in 2015. Victoria was previously Deputy Head of Corporate Broking at FinnCap, while Matt had spent nine years on the Liontrust dealing desk, latterly winning an industry award for his work in mid and small cap stocks. Alex Wedge joined the team in March 2020 from N+1 Singer, where he had spent over seven years, latterly as a senior member of the equity sales team. Natalie Bell joined the team in August 2022, having previously been a member of the Liontrust Responsible Capitalism team where she led engagement with investee companies.

Anthony Cross

Anthony Cross joined Liontrust in 1997 and started managing Economic Advantage funds in 1998. Before moving to Liontrust, Anthony joined Schroder Investment Management as a graduate trainee, later becoming an equity analyst before joining the Smaller Companies team in 1994. Anthony Cross graduated in 1990 from Exeter University with a degree in Politics. Read more

Julian Fosh

Julian Fosh joined Liontrust in 2008 from Saracen Fund Managers Ltd as a Fund Manager on the Economic Advantage funds with Anthony Cross and to develop the Liontrust Economic Advantage process. From 2004 to 2008, Julian was the co-manager of Saracen Growth Fund. Before this, Julian headed the investment department at Scottish Friendly Assurance Society Limited where he managed a range of funds including UK equity OEICs, life and pension funds. In a career that started in 1984, Julian has also worked at Britannia Investment Managers and Scottish Amicable. Julian graduated in 1984 from Merton College Oxford with an MA in Jurisprudence. Read more

Matt Tonge

Matt Tonge joined the Economic Advantage team in 2015 to analyse small caps. Matt moved to the Liontrust trading desk in 2003 from Barclays Capital Asset Management and in 2014 was named Mid-Tier trader of the year by The Trade magazine. Read more

Victoria Stevens

Victoria Stevens joined the Economic Advantage team in June 2015 to analyse investment opportunities primarily across the small cap universe. She was previously deputy head of corporate broking at finnCap and a senior reporter and diary editor at City AM.
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Alex Wedge

Alex Wedge joined the Economic Advantage team in March 2020 and became a co-manager at the start of 2021. Alex moved from Singer Capital Markets, one of the largest dedicated small cap brokers in London, where he had spent over seven years, latterly as a senior member of the equity sales team. His role at Singer Capital Markets included developing and communicating investment ideas to buy side clients, as well as advising corporate clients on shaping their investment case and raising equity capital. Read more

Natalie Bell

Natalie joined the Economic Advantage team in August 2022 from the Responsible Capitalism team. Prior to joining Liontrust in February 2021, she was at EY for over six years as part of their Corporate Governance team. Read more

Our investment process

The process seeks to identify companies that possess intangible assets which produce barriers to competition and provide a durable competitive advantage that allows the companies to defy industry competition and sustain a higher than average level of profitability for longer than expected.

In the fund managers’ experience, the hardest characteristics for competitors to replicate are three classes of intangible asset: intellectual property, strong distribution channels and significant recurring business.

Other less powerful but nonetheless important intangible strengths include franchises and licenses; good customer databases and relationships; effective procedures and formats; strong brands and company culture.

These intangible assets produce barriers to competition, protect margins and are capable, in the opinion of the fund managers, of reaping a financial advantage in the form of cash flow returns in excess of the cost of capital. A company that consistently generates excess cash flow returns will benefit from compounding as it reinvests this excess return into the business.

Every smaller company held in the Economic Advantage funds has at least 3% of its equity held by senior management and main board directors. Companies are also assessed for employee ownership below the senior management and board and changes in equity ownership are monitored.

In the fund managers' experience, the hardest characteristics for competitors to replicate are three classes of intangible asset: intellectual property, strong distribution channels and significant recurring business.

Economic Advantage

UK Growth Fund

The Fund seeks UK-listed companies with a durable competitive advantage that allows them to defy industry competition and sustain a higher than average level of profitability for longer than expected.

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Economic Advantage

Special Situations Fund

The multi-award-winning Fund seeks UK-listed companies with a durable competitive advantage that allows them to defy industry competition and sustain a higher than average level of profitability for longer than expected.

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Economic Advantage

UK Smaller Companies Fund

The Fund, which has been managed by the Economic Advantage team since 1998, seeks companies with a durable competitive advantage. All smaller companies must have a minimum 3% equity ownership by senior management.

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Economic Advantage

UK Micro Cap Fund

The Fund seeks companies with a durable competitive advantage. All smaller companies must have a minimum 3% equity ownership by senior management, which the fund managers believe leads to better corporate performance.

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