Pengana ties up with Lizard Investors to run small caps fund
Pengana Capital, a funds management group specialising in listed equities, has reportedly launched a joint venture with global small caps specialist Lizard Investors to run the Pengana Global Small Companies Fund.
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The fund will have an initial capacity of A$633m ($500m) and will be run unhedged in Australian dollars, according to a Financial Standard report.
The fund will invest worldwide, focusing on global stocks capitalised under $10bn, with a median market cap expected to be less than $3bn.
Pengana Capital CEO Russell Pillemer said: "The mandate will be for 30-80 stocks as we believe that a concentrated fund will outperform given the quality of smaller company stocks available globally.
"Lizard’s value-oriented investment style is akin to our local Pengana Emerging Companies Fund, which also seeks to identify businesses through in house fundamental research that are overlooked and mispriced", he added.
According to Pillemer, global small caps will exhibit strong growth over the coming years.
He said: "Even though local demand for international shares has been increasing, not much of this has gone into specialised small cap funds, in part due to the lack of high quality global small cap investment options."
