Clear thinking investment management

Lightman is an independent investment management company based in London. We are dedicated to European equities.

We combine a deep historical perspective of stock market returns with modern quantitative techniques. Our investment principles are rooted in empirical research. Rather than rely on theory, we focus on investment characteristics that have been proven to work with the highest consistency over the longest time frames.

We aim to provide high levels of customer service with a transparent charging structure and clear communication.

The Team

Rob Burnett

Fund Manager

Rob managed the Neptune European Opportunities Fund from 2005 to 2018. He was also head of analysis of the global financials sector, specialising in researching banks. Prior to running the European Opportunities Fund he managed the Neptune Japan Opportunities Fund. He studied Politics, Philosophy and Economics at Oxford.

Luis Barreiro

Investment Analyst

Luis began his professional career in 2005 working in the equities division of Credit Suisse in London. In 2008 he decided to return to his native Madrid where he continued to work in equities shifting his focus from fundamentals to quantitative analysis of markets. He has focused purely on quantitative analysis since 2012. Luis graduated with a degree in Business Administration with a specialisation in Finance at CUNEF University.

Sumit Mittal CFA, FRM

Investment Analyst and COO

Sumit worked at the Financial Conduct Authority from 2013 to 2017 as a Technical Specialist within Investment Management. Prior to his regulatory work he worked as an Investment Analyst for First Climate. He is a CFA charter holder, and has completed the Financial Risk Manager programme. Sumit also holds an MBA, completing his programme at the Saïd Business School, Oxford. He has a degree in Mechanical Engineering from the National Institute of Technology, Warangal.

Phil Horton

Sales Director

Phil spent 9 years working alongside Rob, managing a range of clients at Neptune Investment Management. He initially looked after nationals and networks, before moving into discretionary sales covering London and the South East, taking on the position of Head of Discretionary Sales. He holds the IMC and Certificate in Securities.

The Funds

The LF Lightman European Fund (UK OEIC) and the Lightman European Equities Fund (Lux SICAV) are concentrated, high conviction portfolios of 40-50 European equities.

Our team implement a unique and disciplined investment philosophy and process that is backed by a century of historical perspective of the drivers of stock market returns.

We favour companies with the following characteristics:

High free cash flow as a proportion of market value

Low price to book and price to earnings ratios

Positive operational momentum, where an acceleration in free cash flow is imminent

Mature industries where incremental investment rates are low

Our investment philosophy and process leads to portfolios that tend to have a contrarian edge, providing differentiation from the peer group and the benchmark, supporting diversification

The UK OEIC launched on 29th March 2019 and the Lux SICAV launched on 14th September 2020.

Fund Documentation

LF Lightman European Fund (UK OEIC)

Fund Factsheet

Prospectus

Key Investor Information Documents (KIID’s):

Institutional Accumulation (I-Acc)

Institutional Income (I-Inc)

Retail Accumulation (R-Acc)

Lightman European Equities Fund (Lux SICAV)

Key documentation (Prospectus, KIID, application form etc.) for this fund can be found at the following link:

Fund Documents

How to invest?

The LF Lightman European Fund is available on a number of investment fund platforms.

For dealing directly, please click below:

Click here to invest

Fund Commentary

Why German Bund yields may be misleading investors about the trajectory of the European economy

The latest wave of QE has absorbed the entire available supply of the German Bund market. Over the summer, QE purchases have pushed the free float to zero. The ECB is still trying to purchase c.€20bn per month. This has sharply decoupled bund yields from economics, potentially misleading investors – providing an opportunity and a risk.

Downside risks are already priced into European equities

European equities have priced in a significant growth scare in recent months, such that there is now an attractive asymmetry in the risk profile of cyclical value compared to defensive growth.

Wall of Worry for Reflation Rebuilt

The wall of worry for reflation and value appears rebuilt. Whilst absolute returns for indices have been contained recently, relative returns have not. The magnitude of relative sector dispersion in Europe over the last 6 weeks has been identical to the 6 weeks prior...

A Buying Opportunity for Value

Rebuilding the reflation wall of worry Over the last decade, value has had brief bursts of outperformance, only for the outperformance to be given back over subsequent months. Since Q3 2020 European value has outperformed growth by 10%, but over recent weeks value has...

Policy to reduce inequality and equity market implications

In an earlier note this year we argued that full employment appears to be taking precedence over price stability: a higher tolerance for inflation might be justified by our society today – in the name of reducing unemployment. Underneath this policy shift and catalysed by the current crisis is a growing awareness of inequality – and the appetite to reduce it

Headline Risks for the Technology Sector and US Equity Market Relative Performance

The relative performance of US equities and the outlook for the Technology sector are closely aligned. This short note aims to highlight headline risks that the Technology sector may face in 2021.

A Radical Policy Shift

Major crises often legitimise and cement radical policy changes. The 2008 Financial Crisis allowed quantitative easing to become accepted and in time to become mainstream. The current crisis has legitimised government deficit spending – financed by central banks. This policy shift may be a reflection of a change in societies’ priorities. The implications for nominal GDP, equities and bonds could be profound.

Market disruption from good news

It sounds odd to talk of the risk of good news, especially with some markets at or near all-time highs. Yet if we look under the surface of equities and bonds, enormous pessimism about the economy is embedded in valuations.

Europe’s leap forward

It can be argued that Europe’s jointly issued stimulus package is the most significant moment for the EU since the launch of the single currency.

European bank earnings catalysts

Given the economic shut down, bank investors are correctly weighing the scale of loan loss provisions in 2020. This is the dominant driver for bank earnings this year, but this focus obscures from view other positive earnings catalysts and developments that can act to support European bank share prices as we move toward 2021. In this note we discuss some of these supportive factors for banks that are tangible this year and next.