Liontrust plans European value fund

Liontrust is planning to launch a European value fund for Ross Hollyman when he joins the group from GAM in January 2010.

Fund Strategy understands Liontrust is interested in acquiring the Gam Star European ­Systematic Value fund Hollyman runs. Or the group may devel­op a new vehicle modelled on the GAM fund, which Hollyman has managed since it launched in 2004.

Gam Star European Systematic Value is a long-only fund investing in European equities, with its largest geographical weightings in Britain, France and Germany.

Holdings in the fund as of May 29 include Astra­Zeneca, Barclays, BNP Paribas, Deutsche Bank and France Telecom.
Under his tenure the €155m (£132m) fund fell 20.5% over the three years to June 24, compared with the Europe ex UK sector average fall of 27.3%, according to Financial Express. The MSCI Europe index fell 23.3% over the same period.

Hollyman’s investment process relies on quantitative analysis, which fits Liontrust’s house style.

When he joins Liontrust, he will develop and document Global Earnings Surprise, Global Multi-Factor and Global Value pro­cesses for the firm.

Earlier in his career at JPMorgan Fleming, Hollyman worked alongside Gary West and James Inglis-Jones, now Liontrust’s most prominent fund managers.

The European value fund will be one of at least three new products Liontrust will develop for Hollyman on the retail side. He will also run institutional funds and long/short mandates. The group says it will make further hires, with the aim of building a global equities team.

Hollyman manages about $200m (£121m) of assets in British and European equities. He is lead manager on European Systemic Value & Income, Star Absolute EuroSystematic, Star European Systematic Value, Star European Systematic Value & Inc­ome, Star UK Dynamic Equity, and UK equity Hedge.

GAM says the mandates will be handed to Rob Cornish and Nikki Martin, European and British equity specialists respectively, who ran the funds under Hollyman’s direction.

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