Former Magellan managers launch global SMID boutique
Two former Magellan fund managers have launched their own boutique firm with support from Bennelong Funds Management, focusing on small and mid-cap global equities.
Kris Webster spent 14 years at Magellan until November 2022 in a variety of roles, including head of small and mid-cap and head of global investment. Meanwhile, his colleague Michael Poulsen was at the business for over a decade, concluding his time as portfolio manager on the Magellan High Conviction Fund.
The pair both departed in November 2022 amid a restructuring by the firm which was reeling at the time from the unexpected loss of chief investment officer Hamish Douglass.
Since leaving the company, the pair have now come together to launch their own boutique firm called Canopy Investors.
The Canopy Global Small & Mid Cap Fund, which is being launched in partnership with Bennelong, will invest in a concentrated portfolio of high-quality and attractively priced small and mid-cap listed companies, with balanced exposures across a range of sectors and regions.
The fund is suitable for investors with a longer-term orientation, who are seeking capital appreciation through an actively managed portfolio of global small and mid-cap equities and are comfortable with the higher associated level of volatility.
As well as their experience in the asset class, the pair said there are fewer funds that offer access to small and mid-caps across a global universe.
Webster said: “The global index is increasingly concentrated in the largest companies – the largest 200 companies represent about two-thirds of the most commonly referenced global index – and most global equities strategies are naturally focused on these stocks. We think such a focus ignores incredible opportunities among the thousands of smaller global listed companies, many of which are very high-quality businesses and have strong and aligned management.
“The fund will only invest in high-quality companies with demonstrable competitive advantages, aligned management, strong financial results, and favourable ESG characteristics. Quality companies have been shown to outperform over time, and this is especially true among smaller companies.”
Bennelong chief executive, John Burke, praised the pair’s experience and track record in managing global equities.
“We believe there are great opportunities in the small to mid-cap market in the current environment. The fund offers diversification away from an increasingly concentrated global large-cap index. This is an opportune time to launch a partnership with a specialist and experienced team of investment managers.
“As a business, our approach is to partner with high-quality boutique asset managers and bring high-grade investment products to the Australian market.
“By providing distribution, administration and business support, we allow our partners to focus on what they do best – manage money.”
AUTHOR
Laura Dew
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