The Pengana Global Small Companies Fund is an actively managed portfolio of global small and mid-cap stocks.
The Fund’s investments are managed by specialist US-based manager Lizard Investors LLC, who create and actively manage portfolios not typically owned by large institutions.
The investment manager uses a value-oriented approach to identify and invest in quality businesses that create significant value but are mispriced, overlooked, or out of favour.
The investment manager conducts independent analysis to generate their own investment ideas. Investment opportunities must meet the following five criteria to be considered for inclusion in the portfolio.
- A durable competitive advantage;
- Management alignment with minority stakeholders;
- Sound corporate governance;
- Strong balance sheets; and
- Compelling valuations.
The portfolio is well diversified across different geographies and industries.
Benefits of investing
Access to a vast investment universe. With over 50,000 listed global small to mid-cap companies on world stock markets, there are many opportunities for investment managers that can generate their own ideas and conduct independent research.
Specialist skills. The senior members of the Lizard investment team have over 50 years of combined investment experience in small cap investing.
A truly active fund. The Fund is completely benchmark unaware and selects companies purely on their investment merits not on their weighting in the index. The portfolio is typically concentrated with 30-50 stocks.
Quality businesses at compelling valuations. The Fund focuses on identifying companies with sustainable business models, strong balance sheets, disciplined management and strong governance at compelling valuations.
Potential for higher returns. Global small and mid-cap stocks have the potential to deliver higher returns (alpha) due to the underlying growth potential of the companies.