Pengana kicks-off small caps division

Pengana Capital has unveiled details of the two key investment managers that will be responsible for running its anticipated new small caps venture, the Pengana Emerging Companies Fund.

The two Melbourne-based asset managers are the former JBWere Emerging Leaders Fund portfolio manager, Steve Black, and ex-Citigroup senior small cap analyst Ed Prendergast.

Money Management reported last week that Pengana was aiming to launch the fund by the end of the month, with an initial capping of $300 million, however this will now take place in early November.

The announcement of Black and Prendergast’s joining had been delayed due to potential legal issues arising with their respective former employers.

The new offering will sit alongside Pengana's existing investment divisions, which include property, hedge funds and a listed investment company.

Black and Prendergast have a combined 18 years experience in small companies investing, spanning both funds management and institutional research.

Up until last month, Black had been managing the JBWere small cap fund for the previous five and a half years, during which time funds under management grew from less than $30 million to over $900 million.

Meanwhile Prendergast, who has 10 years experience researching listed small companies for institutional investors, left his former employer in September after working as the team leader of Citigroup’s small cap division since April 2000.

The new fund will invest in listed small companies outside the S&P/ASX 50 Leaders Index, with the team adopting a bottom up approach to stock selection.