Mantis to distribute new micro cap offering

Mantis Funds has secured a distribution deal with Balmoral Investors, taking its micro cap strategy to market.

Mantis Funds will distribute the Balmoral Investors Micro Cap Fund to wholesale investors, offering access to quality ASX-listed micro caps via a long only and benchmark unaware strategy. It invests exclusively in companies with a market capitalisation of less than $750 million.

Balmoral Investors, which launched in August 2024, comprises Wik Farwerck and Tim Canham, former portfolio managers at Colonial First State Global Asset Management and First Sentier.

Mantis Funds head of distribution Damien Hatfield said the deal was struck on the back of growing demand from private clients for quality micro-cap investments.

"... accessing experienced portfolio managers with capacity is very challenging. We are privileged to have reconnected with our old friends and colleagues, Tim Canham and Wik Farwerck, to bring their capability to our clients," he said.

"Tim and Wik have outstanding track records in the micro-cap universe, and we are excited to see how they blossom in their new (wholly investment owned) guise."

For his part, Canham said Balmoral Investors is delighted to bridge the gap.

"For too long micro caps have been seen as simply an addendum to small cap investing. We disagree with that and believe it is a very different skill set given the size, liquidity and capital constraints micro-cap companies face," Canham said.

"We see this part of the market as very under-researched and below the radar of the passive investor cohort. Valuations are as attractive as I have seen across my career."

Farwerck added: "Our ability to maintain continuity with our previous portfolio construction methods, detailed financial modelling and investment process has given Balmoral a fast start to creating a new investment house."