Nuix a no-go for Lennox

IPO microcaps Lennox Small caps

2 July 2021
| By Laura Dew |
image
image
expand image

Lennox Capital Partners has said it would not consider investing in Nuix as the company lacks both a management team and future growth strategy.

In a webcast, the two managers, James Dougherty and Liam O’Donohue were asked about IPOs it had considered over the past year.

Nuix listed on the Australian Securities Exchange in December but almost immediately saw its share price fall after missing forecasts and allegations of insider trading by its former chief financial officer. Shares in Nuix were down 72% since it listed versus returns of 12% by the ASX 200.

The pair said: “It is too early in the turnaround to look at Nuix. We have spoken to people in the industry and the technology is strong, they do have some intellectual property there which is a differentiator. But that IP is only worth so much.

“We would also need to have confidence in the management and their strategy to monetise the IP and Nuix don’t even have the management let alone a strategy.

“There has been brand damage done and that has led to a confidence decline. From our point of view, we can’t build an investment thesis because it is missing management and governance which is crucial so we will wait and watch.”

The Lennox Australian Microcap fund had returned 72% over one year to 31 May, 2021, according to FE Analytics, versus returns of 37% by the Australia small and mid-cap sector within the Australian Core Strategies universe.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 18 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 16 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 19 hours ago