"We like the recurring revenues, the subscription model, it's everything that we've come to love in a business. "We like the business model," Ashworth-Lord said. The flop of the highly anticipated Deliveroo IPO helped drive down the price, enabling Ashworth-Lord to buy in at a cheaper price than anticipated. "One of the problems we have with IPOs is the relative lack of financial history that you get in the prospectus … with this one, it was slightly different because we were already prepared and ready to go, we'd already got data going back many years to almost the inception of the business." "It was not an unknown offering at the time it came to the market," Ashworth-Lord said. he was prepared to pounce and make an unusual IPO investment. By keeping an eye on the company over a five-year period. He found DarkTrace, while doing research on another holding NCC Group. The stock is currently up 80% year-to-date. Within three months the stock was up 61% securing Ashworth-Lord a three-bagger. He recently invested in DarkTrace, a cybersecurity company, at £2.50 as it went public. So we are very discerning."Īlthough Ashworth-Lord preference is holding for the long-term, it doesn't mean he's not afraid to shake things up when he sees an opportunity. "We've really got to be convinced that it fits with business perspective investing, and it does what it says on the tin. "We won't go and buy anything," Ashworth-Lord said. As an investment team they can be incredibly demanding, Ashworth-Lord said. If I've got a great business, and it's doing well, I will stay with it forever and the day."įinding winners like Liontrust isn't easy. "People have kept trying to get me to sell out of it and buy into cheaper stuff. "I just like the business," Ashworth-Lord said. Now 11 years on, he remains invested because the company is seeing rapid growth through acquisitions as well in assets under management. He bought the company because most of the funds sat in the top quartiles over one-, three-, and five-year periods, yet the share price was incredibly cheap. One "absolute doozy" is investment firm Liontrust Asset Management (LIO), which is up 78% year-to-date and one of Ashworth-Lord's earliest holdings. Several stocks in the portfolio have year-to-date returns of over 50%, including DarkTrace (DRKTF), Softcat (SCT), and Focusrite (TUNE). Finding multi-baggersĪshworth-Lord's strategy of 'being greedy when others are fearful' is paying off. It is now returning with a vengeance in the second and into the third quarter of this year, he added. The first quarter was a "dash to trash" as investors flocked to value traps and quality was not flavour of the month, Ashworth-Lord said. It's been a tale of two halves in the UK, Ashworth-Lord said. Since then, the index has surged around 26% as investors globally searched for returns with interest rates remaining at all-time lows. The FTSE 100 had fallen 16% since the start of last year. In November, at a time when most investors were fleeing from the UK market, Ashworth-Lord topped up his holdings to take advantage of how cheap the market was. Since the fund's inception in 2011, it's returned 325% to investors compared to the 108% returns of its benchmark, the Investment Association's UK All Companies sector. Yet, over the last 10 years, Ashworth-Lord's approached his strategy with ease. "Not many businesses around that fit the bill, believe me," said Ashworth-Lord, in an interview discussing his investing strategy in November of last year. Inspired by Warren Buffett, Ashworth-Lord leverages the "business perspective investing" philosophy and looks to invest in quality companies that are very cash-generative, have strong finances, and have balance sheets with growth potential. This story is available exclusively to Business InsiderĪnd start reading now. Account icon An icon in the shape of a person's head and shoulders.
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