YouGov Share Price Plunge: Which Funds Are Exposed?

Shares in the polling and analytics company YouGov (YOU) have taken a battering after a profit warning spooked investors away from the company last week.

The London-based market research and data firm, which is well known for its political polling, has plunged over 44% to £4.47 over the last five days. Its market capitalisation is now around £507 million.

But how are the stock’s backers reacting to the disappointing news?

It is actually difficult to tell. YouGov is something of an elephant in the room in the City, and fund houses with the biggest exposures to it seem reluctant to comment.

Nevertheless, some are talking. John Moore, senior investment manager at RBC Brewin Dolphin, said that, from now on, YouGov will have to focus on rebuilding trust around its longer-term growth plans.

“YouGov is a data business that should be a long-term beneficiary of artificial intelligence (AI) but in the short term it has been broadsided by declines in its fast-turnaround research services,” he told Morningstar.

“This will come as a shock to shareholders, who were guided toward high levels of visibility in the previous statement, and wider observers who might think that, in such an election-heavy year, the business should be well placed.

“From here, rebuilding trust around the longer-term growth narrative and executing on areas like the Consumer Panel business in 2025 will be key to the share price recovering.

But according to Laurence Hulse, investment director at Dowgate Wealth, the fund sold out of the polling company months ago. The fund’s performance has been a mixed bag, recording negative performance of -3.02% in 2023, although its year-to-date return has picked up to 9.06%.

The Athelney Trust (ATY) held a 2.4% exposure, as of March 31, 2024.

The trust, which invests solely in UK small cap companies, has seen its share price trail the Morningstar UK Small Cap Index, with both reporting -2.8% and 8.9% over one year, respectively.

London-based asset management firm Liontrust also has a significant stake in YouGov.

The polling company features in both Liontrust’s Morningstar Bronze-Medal rated UK Smaller Companies Fund, as well as the Liontrust GF Special Situations Fund at 2.36% and 1.8%, respectively. Both funds have experienced outflows over the last year.

The Liontrust UK Smaller Companies fund has seen redemptions of more than £149 million, while Liontrust GF Special Situations witnessed outflows of more than £63 million.

However, the Liontrust GF Special

13 Questions for Redwheel’s James Johnstone

In this series of short profiles, we ask leading fund managers to defend their investment strategies, reveal the biggest risks to the bull market, tell us their unpopular investment opinions, and discuss what they’d never buy.

This week our interviewee is James Johnstone, Portfolio Manager of the Morningstar 5-star rated Redwheel Next Generation Emerging Markets Equity Fund.

Describe Your Investment Strategy

We seek outgrowth at a reasonable price over the next 10 to 20 years. For example, I first researched Taiwan Semiconductor Manufacturing Company (TSMC) as a $22 billion (£17.4 billion) company in 2001. Its market capitalisation is now $675 billion.

What Are 2024’s Biggest Investment Opportunities?

The return to real assets and the recognition the world has finite resources in commodities and people. Emerging markets provide the solutions to the world’s problems. They meet much of the world’s commodity needs and have younger populations with strong workforces, which is why our strategy focuses on emerging and frontier markets.

What Are The Biggest Risks to The Current Bull Run?

Any increase in geopolitical tensions between the West and a China/Russia/Iran-led alliance may be damaging for the global economy.

Who is the Most Inspiring Person You’ve Worked With?

Robert Friedland. I have invested in several of Robert’s mining operations over the last three decades. He has always been at the very forefront of thought leadership on how the world can transition to clean energy and combat climate change. I also owe a lot to Philip Ehrmann who was my inspirational boss at Gartmore and taught me a lot about emerging markets. 

What (if Any) Investments Fit the ‘Buy and Hold Forever’ Category?

Well, I wish I could get in my time machine and say TSMC from 2002. I think it will continue to dominate the world of semiconductors for years. For decades to come, I do not think you can get a better investment than a tonne of copper.

What Would You Never Invest in?

Never say never, but I am not a big believer in crypto.

How Worried Should Active Managers be?

Active managers should always be worried – it’s their job! I think there will always be a role for the human brain versus a machine. Everyone – be they quant machines or real people –hates the bottom and loves the top of every cycle. It is just fear and greed. Will computers of the future ignore those emotions? Ironically, active long-term managers should be able to

Triple Point Energy Transition asset realisation hits £61.6m as managed wind-down continues

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Event Voice: Your Questions Answered by AllianceBernstein at the Private Markets Summit

Can you give a brief overview of your strategy in terms of what you are trying to achieve for investors, your investment process and the make-up of the investment team?

Alternatives are increasingly in focus for institutional and high net worth investors and an important growth area for AB. We’re committed to building a diverse alternatives platform by expanding our capabilities and attracting top industry talent. Alternatives generally comprise 8% to 10% of our overall assets. 

Within alternatives, we have focused on private credit solutions, which account for $45 billion of our AUM. Over the last decade, private credit has evolved from a niche asset class into what we consider an integral component of a diversified investment portfolio. AB’s suite of private credit strategies, which spans lending to middle market corporations, US and European real estate properties, consumers and small businesses, complements our $284 billion public fixed income platform. Experienced investment teams with institutional-caliber pedigrees and established track records are based across the US and Europe.

How would your strategy work in an investor’s portfolio?

A private credit allocation can play three important roles in an investment portfolio: it increases income potential, diversifies broad public market exposure and can reduce overall volatility. 

We seek to achieve this by spreading capital across three independent investment teams. One is focused exclusively on corporate direct lending to private equity backed companies and private equity funds. Another invests in the commercial real estate market, with separate strategies dedicated to the US and Europe. The third focuses on consumer-oriented specialty finance and hard asset lending, including aviation assets and debt and equity in power projects.

We consider all three essential components of a diversified allocation rather than an “either/or” proposition. By allocating across all three, we believe investors can improve current income reduce risk. We can invest with a variety of vehicles, including open-end and closed-end funds, both drawdown and perpetual.

Can you identify a couple of key investment opportunities for your fund you are playing at the moment in the portfolio? This could be a stock, sector or thematic level.

Average new-issue yields in corporate direct lending strategies have continued to benefit from elevated base rates, slightly offset more recently with tighter spreads. Base rates and asset yields are likely to remain above averages from recent years, and higher asset yields result in higher return potential. 

At AB Private Credit Investors, our $18.6 billion

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UK jobs market remains stagnant in May despite economic growth

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