Lennox Australian small companies fund upgraded to ‘Highly Recommended’

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The rating of the flagship Australian Small Companies Fund of boutique equities manager Lennox Capital Partners has been upgraded to ‘Highly Recommended’ by Lonsec.

In addition, Lonsec has given the Lennox Australian Microcap Fund, which was launched last year, a ‘Recommended’ rating.

Lennox is run and majority owned by principals and portfolio managers James Dougherty and Liam Donohue in conjunction with Fidante Partners, a boutique funds management business and division of Challenger Limited.

In its rating report, Lonsec described the investment team of Mr Dougherty, Mr Donohue and analyst Olivia Bible as ‘high quality’ and strongly aligned to the interests of investors and noted their investment process was well-structured and repeatable.

“Lonsec has very high conviction the financial product can generate risk-adjusted returns in line with relevant objectives. The financial product is considered a preferred entry point to this asset class or strategy,” the report stated.

The Lennox Australian Small Companies Fund provides investors with exposure to a high-quality portfolio of Australian smaller companies. Lennox employs a fundamental bottom-up research effort seeking to identify securities that have been mispriced by the market.

The Fund aims to hold between 20 to 40 stocks and has returned 14.07% p.a. net of fees, as at 31 January 2019, since its inception in April 2017. This is 6.16% more than the S&P/ASX Small Ordinaries Accumulation Index over the same period.

Mr Dougherty said Lennox was delighted to receive such strong recognition from Lonsec. “The Lennox Australian Small Companies Fund inflows are gaining momentum and we are confident the newer Lennox Australian Microcap Fund will also flourish under the same investment approach”, he said.

The Lennox Australian Microcap Fund is an actively managed, style-agnostic portfolio investing in a broad range of microcap equities. The fund’s objective is to identify companies with compelling medium-term valuations and low short-term risk to earnings.

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