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Bennelong joins forces with boutique manager on new small and mid-cap fund

By Rhea Nath
3 minute read

The actively managed fund will hold 20–40 high quality and attractively priced small and mid-cap listed companies.

Bennelong Funds Management has partnered with boutique firm Canopy Investors to launch a new global small and mid-cap fund.

Formed in 2023, Canopy Investors was founded by former Magellan portfolio managers Kris Webster and Michael Poulsen, who bring over three decades of experience in global equities to the fund.

It joins Bennelong’s stable of boutique managers like 4D Infrastructure, real estate manager Quay Global Investors, Australian equities manager Touchstone Asset management, and emerging markets specialist Skerryvore Asset Management.


Bennelong chief executive John Burke said the new partnership presents an “outstanding opportunity” to bring a great team and fund to its clients and Australian investors more broadly.

“We believe there are great opportunities in the small to mid-cap market in the current environment,” he said.

The Canopy Global Small & Mid Cap Fund will hold 20–40 companies with no more than US$70 billion in market capitalisation, offering an alternate option to various large-cap global listed equity strategies available in the market.

“By allocating to small and mid-cap companies, investors benefit from a broader range of opportunities and greater diversification,” co-portfolio manager Webster said.

He observed the global index is increasingly concentrated, with the largest 200 companies representing about two-thirds of the most commonly referenced global index.

“We think such a focus ignores incredible opportunities among the more than 5,000 smaller global listed companies, many of which are very high-quality businesses and have strong and aligned management,” he said.

“Smaller companies also offer the potential for strong returns, as seen historically. These companies typically have longer growth runways than larger companies, and mispricing is more likely to occur and persist, given that they often attract less investor focus than their larger counterparts.”

Co-portfolio manager Poulsen added the fund will seek to invest in high-quality companies with demonstrable competitive advantages, aligned management, strong financial results, and favourable ESG characteristics.

“Quality companies have been shown to outperform over time, and this is especially true among smaller companies,” he said.