Langdon expands global footprint of small caps strategy

Boutique global small companies manager and Pinnacle Investment Management affiliate, Langdon Equity Partners, has expanded the market presence of its proprietary strategy across three key regions.

The launch of the Langdon Global Smaller Companies Fund – UCITS coincides with the opening of another office location in London, catering for investors across the United Kingdom, Europe and Asia who seek exposure to Langdon’s global small caps strategy.

The strategy offers a concentrated portfolio with a high conviction focus of 25 to 40 small companies listed on developed market exchanges, and is measured against the MSCI World Small Cap Net Index. The Australian unit trust has returned 18.7 per cent per annum after fees since its inception in June 2022, outperforming the benchmark by 6.9 per cent p.a.

“The London office and the launch of a UCITS Fund are both a natural extension of our global investment strategy, one that has continued to develop in both scale and sophistication,” Greg Dean, Langdon’s Founder and Lead Investor, said.

“Our growing presence in the region, unlocks important access to investment opportunities – and allows us to build relationships with clients, management teams and companies much more consistently than we could making 6-8 trips per year as we have over the last decade or so.

“Global small cap, as an asset class, was in its infancy 10 years ago when we launched this strategy at my predecessor firm. We saw it as a fruitful hunting ground to exploit and we believe we have proven skilled at extracting alpha from the large and inefficient universe of listed companies under US$10B while delivering strong absolute returns.

“Our portfolio will be positioned in companies that we believe have strong fundamentals and will continue to deliver cashflow growth of 10-15% per share over the cycle. We also believe combining global small caps with either global large caps or regional mandates may improve diversification and enhance long-term returns.”

Langdon Equity Partners is based in Toronto, Canada and now manages over US$300 million in global and Canadian small cap strategies.