A fund manager within the Challenger-owned Fidante stable has launched a new Australian microcap fund.
Lennox Capital Partners has launched the Lennox Australian Microcap Fund to complement their flagship small companies fund.
The new microcap fund, launched with Fidante Partners, is an actively managed "style-agnostic" portfolio invested in a range of microcap equities.
The fund will be benchmarked against the S&P/ASX Small Ordinaries Accumulation Index and hold between 20 and 40 Australian and New Zealand-listed securities.
Mr Donohue said the new fund will invest in under-researched companies that have had their valuations miscalculated by equity markets.
"That could be [due to] structural change such as technological innovation; it could be cyclical change within an economy; or company-specific change," Mr Donohue said.
"We believe that the information that comes out of that change is processed inefficiently by equity markets and therefore creates mispricing and opportunities for active managers such as ourselves.
"Our strategy for the microcap fund follows the same structured and repeatable process as our small companies fund, with an emphasis on risk management, which is crucial for success in this volatile sector of the market. Our investment philosophy leads us to invest in well-managed, well-governed companies that have forecastable earnings."
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 16 Oct 2018NAB to address advice issues in $314m payoutBy Eliot Hastie
- 16 Oct 2018ANZ under fire over ‘conflicted’ IOOF dealBy James Mitchell
- 16 Oct 2018Advisers should be early call in divorce casesBy Adrian Flores
- 16 Oct 2018War with Dover ‘destroyed me’, says ex-adviserBy Adrian Flores
- 16 Oct 2018Macquarie adds Insight fund to platformBy Adrian Flores
- 15 Oct 2018FASEA is setting a new standard for the industry: Assistant TreasurerBy Eliot Hastie
- view all