News & Insights

Small caps roar back with a lead over the ASX200… but can they hold the mantle or is safety in the giants?

Australian small-caps no longer deliver a return premium simply by virtue of their size, making passive approaches unsuitable for the asset class. However, inefficiencies in the market create strong opportunities for skilled active managers like Lennox Capital Partners to generate alpha through disciplined stock selection.

Zip Co (ZIP) is a consumer lending business that operates in Australia, New Zealand and the US. The company offers multiple different point-of-sale credit products to customers and provides integrated retail finance solutions to merchants, both online and in-store.

Lennox’s Small Companies Fund has produced consistently strong double-digit compound returns for investors. James Dougherty explains how.

​Telix Pharmaceutical (TLX) is a healthcare company focused on the development and commercialisation of various radiopharmaceutical assets.

Lennox Small caps manager Liam Donohue believes oOh!media looks like a compelling opportunity and explains why he is eyeing up some former market darlings.

Integral Diagnostics (IDX) is a leading healthcare company specializing in diagnostic imaging, with strong growth drivers including structural growth in the industry, benefits from its merger with Capitol Health (CAJ), and opportunities for market share expansion, positioning it for significant future value growth.

Recently on Livewire, James Dougherty shared Lennox’s strategy for identifying undervalued stocks and revealed his pick for the next-generation powerhouse on the ASX.

In this episode, host James Whelan was joined by Jody Fitzgerald of Morningstar Australia and Liam Donohue from Lennox Capital Partners to discuss Small Caps.

History doesn’t repeat, but it does rhyme – and if this adage holds true, small caps are likely to present strong opportunities for patient investors over the coming years. Read Liam Donohue’s insights in this Sydney Morning Herald article.

In this short Q&A, get to know Liam Donohue as he discusses setting up Lennox, the evolution of the small cap market and invaluable insights he’s gained over the years.

James Dougherty shares his outlook for the small-caps market, the attributes he thinks are important in selection, and his top picks to buy and hold for the next five years.