Marketing communication · Professional investors and eligible counterparties only
European equities · Value · UCITS · Art. 8
Lightman European Equities Fund
Lightman Investment Management · London
The investment manager primarily invests the fund’s assets in the shares of companies listed and domiciled in Europe, maintaining a concentrated portfolio of approximately 40-50 holdings. It seeks to invest in undervalued companies with positive operational momentum.
UCITSSFDR Art. 8c. 40-50 holdingsAllfunds
The Lightman implementation of value is differentiated: a focus on low-priced securities with operational momentum and balance-sheet strength.
Why we represent this fund
01A philosophy rooted in empirical research. Lightman’s investment philosophy focuses on investment characteristics that have worked with the highest consistency over the longest timeframes: high free-cash-flow yield is favoured over low free-cash-flow yield, and low price-to-book and price-to-earnings over high multiples.
02Value with positive operational momentum. Cheap equities tend to be cheap because they have experienced difficulties. The manager aims to own companies whose difficulties are coming to an end and where earnings growth is returning: an operational improvement in a cheap security can see both earnings and multiple expansion lift the share price.
03Strong balance sheets. Financial gearing risk is diminished by owning companies with strong balance sheets. Strong balance sheets shorten duration, speeding up cash returns, and diminish dilution risk.
04Risk controlled through price and cyclicality. The risk of multiple compression is limited by paying low prices. Operational gearing comes from cyclicality, so the manager prefers cyclicals that have already experienced recession, diminishing downside risk.
05Positive ESG momentum. The fund aims to generate positive environmental, social and/or governance (ESG) momentum. Lightman focuses on companies with the capacity to improve their ESG rating: on the rate of change of ESG rather than static readings.
Principal risks
01Capital and income may fall. The value of investments and the income derived from them may fall as well as rise, and shareholders may not recoup the original amount they invest in the fund.
02Currency risk. Funds investing in overseas securities are exposed to currency risk. Exchange-rate movements may cause the EUR value of investments to increase or decrease.
03Dealing costs and charges. The fund may suffer a reduction in value due to dealing costs incurred when buying and selling investments and management fee charges applied to the fund. Net yields may be lower than gross yields.
Marketing communication. This is not investment advice, a recommendation, or an offer or solicitation to buy or sell any financial instrument. Addressed exclusively to professional investors and eligible counterparties as defined in Directive 2014/65/EU (MiFID II); it is not intended for retail clients. Capital is at risk: the value of investments may fall as well as rise, is not guaranteed, and you may get back less than you invested. Past performance is not a reliable indicator of future results. Any forward-looking statements reflect the manager’s opinion at the date of publication, are not guaranteed and may change. Costs and charges reduce returns and are set out in the KID and the prospectus, which together with the summary of investor rights are available from the management company and from us on request; read them before investing. Sustainability-related information is set out in the fund’s SFDR pre-contractual disclosures; an SFDR article classification is a disclosure regime, not a quality rating or a label. Tax treatment depends on each investor’s individual circumstances and may change; this is not tax advice. The management company may decide to terminate marketing arrangements. South Hub Investments, S.L. is a tied agent of Ursus-3 Capital, A.V., S.A. (CNMV reg. no. 251), acting in its name and under its responsibility; no investment advice or discretionary portfolio management services are provided.
