Pinnacle affiliate launches offshore version of smaller companies fund

Langdon Equity Partners, a small-cap investment boutique founded in Toronto and backed by Pinnacle Investment Management, has launched a UCITS fund to offer a global strategy to investors in the UK, Europe, and Asia.

The Langdon Global Smaller Companies Fund - UCITS gives offshore investors access to the firm's concentrated, high conviction strategy of 25-40 small companies listed on developed market exchanges. The strategy, which has US$300 million invested assets, aims to outperform the MSCI World Small Cap Net Index.

Since its inception in June 2022, the Australian unit trust version of the fund has returned 18.7% per annum after fees (in AUD), outperforming the benchmark by 6.9% annually to April 15.

The firm has also opened a London office, "a natural extension" of its global strategy, according to Langdon founder and lead investor Greg Dean, who resigned from his role as a partner and portfolio manager at Cambridge Global Asset Management prior to establishing Langdon.

"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..." Dean said.

He also said that global small caps, as an asset class, were still in their infancy a decade ago when the strategy was first launched at his predecessor firm, describing them as a "fruitful hunting ground to exploit."

"... we believe we've proven skilled at extracting alpha from the large and inefficient universe of listed companies under US$10 billion while delivering strong absolute returns," he said.

"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 is majority owned by its investment team and has grown to employ five investment professionals across its global and Canadian small-cap strategies.

In addition to its London office, it also has a presence in the US, Canada, and Australia.