GAM Crosses 5% Threshold in Liontrust, Builds Stake in Impax on Deep Undervaluation
Event summary
- GAM's special situations portfolios now own over 5% of Liontrust, up from 3.6%, citing undervaluation and management missteps.
- The same portfolios have acquired a 2.2% stake in Impax, highlighting its sustainability focus as a potential consolidation target.
- Liontrust's AUM has nearly halved, while its stock price dropped over 80% from its 2021 peak to early 2026.
- Impax's share price has fallen about 90% since December 2021, with AUM down by 42%.
The big picture
GAM's moves reflect broader industry pressures on asset managers, where undervaluation and governance concerns are driving activist interventions. The focus on sustainability as a potential asset highlights shifting priorities in the UK fund management sector. With both Liontrust and Impax experiencing significant AUM declines and stock price drops, GAM's stakes could signal consolidation opportunities or forced strategic pivots.
What we're watching
- Activist Pressure
- Whether GAM's increased stake in Liontrust will force governance or strategic changes.
- Consolidation Play
- The pace at which Impax's sustainability focus attracts consolidation interest.
- Valuation Realignment
- How GAM's intervention affects Liontrust and Impax's stock prices and AUM trends.