We have a long-term record of outperformance (as at 31 August 2018 the annualised portfolio performance return since inception for the GC1 portfolio was 18.43%)
We find stocks that other managers don’t
We are a dedicated small and micro-cap specialist
We have experienced several difference market cycles (so know what to look out for)
We are co-investors with our other shareholders
Australian small and micro-cap stocks are a vital part of a diversified share portfolio. There are advantages to investing outside Australia’s top 100 companies - smaller companies often have higher growth rates than their larger counterparts and management generally have a large amount of “skin in the game” (which often makes them more aligned to the needs of their shareholders).
The Glennon Capital Small Companies Portfolio (ASX: GC1) invests in ex-100 ASX listed stocks. We seek to take advantage of what we believe are structural inefficiencies in the market. The micro and small-cap segments typically have limited research coverage and lower levels of liquidity that prevents large institutions from meaningful participation in this market segment. The traditional institutional asset management approach continues to focus on benchmark-relative investing and maximising profitability via increasing funds under management rather than preserving returns for clients. We like to think we are different in our approach.
At Glennon Capital, our investment philosophy is to own sensible businesses in sound industries with superior management. We believe these core characteristics must be present in order to succeed over the long term. Glennon Capital specialises in seeking out companies – previously undiscovered – in the broader investment market which meet our criteria in order to maximise returns.
How do we identify these companies? The team at Glennon Capital carries out thorough research to get to know businesses and their operating environments from top to bottom. We visit companies and talk face-to-face with management and we talk to their competitors. We look at new floats and use our extensive network of corporate advisers, private equity players, business brokers and stock brokers to uncover great value small businesses to buy on attractive multiples to ensure our investors are getting maximum returns on investments. We are committed to discovering low profile companies by literally visiting hundreds of them each year to find solid returns for our investors.
The team at Glennon Capital has in excess of 124 years of combined industry experience (which means that we have been part of every type of market cycle) and every team member is a personal shareholder, such is their faith in the process and performance of the company. That’s why we regard our shareholders as co-investors – because they are.
We remain focussed on our goals and would like to thank our shareholders for their continued support.