Liontrust's Cross: The software stocks driving my fund ahead of peers

Special Sits outperformed this year

Liontrust's Anthony Cross said UK software companies have helped his £1.6bn Special Situations fund outperform peers this year, due to the strong recurring income they provide.

Speaking on the tenth anniversary of the fund, which he co-manages with Julian Fosh, the manager (pictured) said many software companies meet his requirement for 70% recurring income, as they have ongoing contracts, granting them pricing power. Cross said they tend to be highly valued by the UK stockmarket, but added: "The FTSE can often be pretty slow at working out that a company is transitioning its business to focus on returning income, and this is where we try to find opportunity." Liontrust profits up 16% despite slower inflows The fund's top holdings include clinical softwar...