• Is now the time to rebalance portfolios towards the highest quality company names that have been left behind by the rally? Read here.

Introducing The Montgomery Small Companies Fund


Introducing The Montgomery Small Companies Fund

We are delighted to welcome respected fund managers Gary Rollo and Dominic Rose to the Montgomery team as we launch our first small companies fund.

Gary and Dominic have ‘lived’ the small companies’ philosophy for many years and will manage the Montgomery Small Companies Fund through a new joint venture called Montgomery Lucent Investment Management.

There is plenty of evidence that small companies can perform well over the long term, as the best of them occupy profitable niches and have the potential to grow quickly – think REA Group, Carsales.com, Flight Centre, Afterpay and the a2 Milk Company. It is easy to forget that these household names were once small companies ignored by many.

The Montgomery Small Companies Fund will search for investment potential and unexplored value among 700 to 800 stocks, outside the top 100.

The Montgomery Small Companies Fund opens on 20 September and will typically invest in a high-conviction portfolio of 30 to 50 small cap companies listed in Australia and New Zealand.  The Fund can also invest in pre-IPO opportunities. The approach takes our traditional focus of actively investing in selected high-quality but undervalued businesses with strong long-term potential growth into new territory.

In working with Gary and Dominic, it has become even clearer to me that applying conviction investing to small caps can reveal opportunities that many miss. It’s essential to know smaller businesses deeply and personally, which means deep analysis will be underpinned with hundreds of face-to-face meetings with management.

And of course, it helps to have a rocket scientist on the team. Gary’s background as an aeronautical engineer – including work on the Stealth Fighter – and his early professional career running computer modelling for the UK’s Defence Evaluation and Research Agency has already helped him earn an enviable reputation in Australia’s funds management industry.  In combination with Dominic’s career dedicated to researching smaller companies at Deutsche Bank and elsewhere we believe we have opened a valuable small companies alternative to the reputable funds that have already closed to new investment.

You can learn more about Gary and Dominic through their profiles on our website.

To pre-register to receive more information about the launch of the Montgomery Small Companies Fund, please click here.

The issuer of units in Montgomery Small Companies Fund (ARSN 635 229 533) (Fund) is the Fund’s responsible entity Fundhost Limited (ABN 69 092 517 087) (AFSL 233045). The Fund’s investment manager is Montgomery Lucent Investment Management Pty Limited (ABN 58 635 052 176, Authorised Representative No. 001277163). The Product Disclosure Statement (PDS) will be available prior to launch of the Fund; the expected launch date is 20 September 2019. Copies of the PDS are expected to be available from 2 September 2019 from Montgomery Investment Management, contactable on (02) 8046 5000 or at www.montinvest.com.
This information has been prepared without taking into account the objectives, financial situation or needs of any investor. Before making any decision to make or hold any investment in the Fund you should consider the PDS in full. An investment in the Fund must be made using a valid application form attached to the PDS. Returns are not guaranteed.


Roger is the Founder and Chief Investment Officer of Montgomery Investment Management. Roger brings more than two decades of investment and financial market experience, knowledge and relationships to bear in his role as Chief Investment Officer. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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  1. Hello Roger,
    Back when you had just released your book ( which I bought a copy of ) I had just sold my small business and was looking for someone to manage a super portfolio unfortunately you didn’t have a fund then so I established with someone else, but I still follow you as I like your strategy plus you live and breath the market at large.
    I am in the process of a potential sale of my commercial property and may well be looking for some where to place my funds
    Since the inception of the Small Cap Fund September last year how has it been traveling in these challenging times? If you have time to reply I would appreciate receiving it from you. Regards Len

  2. Will profitability be a mandatory requirement for stocks held in the fund, or is there the ability to pursue pre-profit opportunities?

    • Yes. Gary and Dominic’s Montgomery Small Companies Fund fund will provide access to what we call ‘Life-cycle’ investing. Companies that are just emerging or commencing commercialisation, as well as developed and established small businesses, are all within their remit. Quality and value remain important. There is however a myriad of ways to make money investing and Gary and Dominic will bring a variety of styles that will seek to capture opportunities that a pure value investing approach may deliberately seek to avoid. The Small Companies Fund will bring a variety of investment styles to capture opportunities beyond the scope of value investing. They will however remain in the small company space while The Montgomery Fund will remain ‘all cap’.

  3. Exciting news Roger. Was consideration given to a listed vehicle or is that a future possibility once a track record has been established?

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