The talent turning good businesses into good investments
To invest successfully in small companies, you really need to know the people running the businesses. And in Gary Rollo and Dominic Rose, the Montgomery Small Companies Fund has two highly experienced fund managers well equipped to assess the leaders of ASX-listed small companies.
These talented managers have worked together for more than a decade and have a track record of seizing the opportunities that others miss.
“My experience tells me that it’s more than just the numbers – it’s critical to meet the management teams of the small companies. Dominic and I have literally pounded the pavement for years doing hundreds of meetings with these management teams. We’re looking to form a partnership with management and talented founders so that as they create value on their journey from small company to large company, our investors benefit. We’re looking for management that can deliver, and that’s what turns a good business into a good investment.”
– Gary Rollo
Because smaller companies are not subject to the same continuous analysis by stockbrokers and industry participants, their prospects for the future are not fully reflected in their valuations, or they take longer to be fully reflected. Both situations create opportunities for astute investors. This is where Gary and Dominic have the talent and experience to assess individual small companies that currently fly under the radar. They will be looking for those future industry leaders that address a large end-market, leverage great technology and have strong management teams.
“We think it’s a really exciting time to invest in small companies. There are a lot of companies that are benefiting from global trends such as the cheaper cost to deploy technology and the rise of the Asian consumer. A lot of these companies can also grow quite well despite the macro environment and volatility. The volatility that’s occurred recently also creates some good buying opportunities.” – Dominic Rose
Before founding the Montgomery Small Companies Fund, Gary and Dominic worked together to at MHOR Asset Management. Gary has 16 years’ experience in portfolio management and equities research, including international equities experience at Morgan Stanley and J.P. Morgan in London. Dominic has 14 years’ experience in portfolio management and equities research, including six years as Head of Emerging Companies Research at Deutsche Bank and four years as Head of Research at Foster Stockbroking.
I’m excited to be introducing you to Gary and Dom through the Montgomery Small Companies Fund.
It really is a ground-floor opportunity to invest in tomorrow’s leaders today.
To register your interest, follow the links on the website.
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 Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. 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.
Alexandros
:
Hi Roger,
Am invested in MSCF. I do not know of Gary’s or Dominic’s investing ability. However am certain that you have an innate ability to spot talent in people and evaluate the performance of your fund managers prior to their engagement. I look forward to the investment journey and potentially above market average returns.
nevil lazarus
:
How is a “small company” defined?
Are the investments to be in small LISTED Companies?
OR
Private Companies run and owned by management — with the management now having the Montgomery Fund as a minority investor??
Roger Montgomery
:
Hi Nevil,
Typically we are talking about small listed companies. Some say those outside the ASX100 (which means companies with a amrket capitalistion of less than $2.1bln. Others suggest small companies are the 197 companies listed on the ASX Small Ordinaries Index. The fund is permitted to invest in pre-IPO opportunities – those expected to soon list on the ASX – but they will form a relatively very small proportion of the fund.
Margot Cunningham
:
Is this fund purely growth or are there regular dividends etc! What sort of return are you anticipating?
Roger Montgomery
:
Hi Margot, best to give the team a call. As the fund is in a trust structure all dividends received, realised capital gains (net of losses) and interest on cash will be distributed. As this is an equity investment it is difficult if not impossible to predict the return.
Maurice Prendergast
:
The $ 25,000 I
Does that act as my investment amount in the fund .
Roger Montgomery
:
If I understand the question correctly, yes.