Glennon Capital has launched a small companies self-managed account (SMA), which has received a three-star rating from Standard & Poor's (S&P).
It is the first small-cap SMA in Australia to get an S&P rating, S&P fund services research analyst John Huynh said.
Lead portfolio manager Michael Glennon said the SMA is on the HUB24 platform and Glennon Capital is in talks with other platform providers. He said it is on the approved product lists of two or three dealer groups.
The Glennon Capital Small Companies Portfolio is new to the retail space and has capacity for new investors.
Glennon, who founded Glennon Capital in 2008, said the small-cap SMA has a capacity of $400 million.
The funds management company specialises in Australian-listed equities portfolios with an emphasis on active small-cap strategies. Its business model requires it to have skin in the game.
"I strongly believe in aligning our interests with our clients' interests, and we do that in a very personal way by having our own money invested alongside our clients," Glennon said.
Huynh said S&P delivered the rating because Michael Glennon has demonstrated an ability to outperform the market across more than a decade of small-cap investing.
Glennon has over 12 years experience as a successful small-cap portfolio manager and 15 years of experience as a small companies analyst.
"He is supported by senior analyst Jeremy McNally, and the portfolio is well managed with respect to mitigating SMA-specific risks," Huynh said.
However, he said the team is small relative to its higher-rated peers.
"Although we have a positive view on Mr Glennon, the team is relatively under-resourced and lacks the depth of experience of some more established small-cap managers," Huynh said.
"This is a common characteristic of small, start-up boutique managers."
