Canada-based small cap investment boutique Langdon Equity Partners has launched a new UCITS fund for investors in the UK and Europe.

The Langdon Global Smaller Companies Fund – UCITS establishes an international presence for the firm, providing UK investors with access to Langdon’s global smaller companies strategy.

This strategy is a concentrated, high conviction portfolio of between 25 and 40 smaller companies listed on developed market exchanges.

Its global smaller companies strategy currently has approximately $300m in invested assets and aims to outperform the MSCI World Small Cap Net Index, which it has done by 7.8 per cent per annum since its inception in June 2022.

“The establishment of a London office and the launch of a UCITS fund are both a natural extension of our global investment strategy, one that has continued to develop in both scale and sophistication,” commented Langdon founder and lead investor, Greg Dean.

“Our growing presence in the region unlocks important access to investment opportunities allowing us to build relationships with clients, management teams and companies more consistently than we could making six-eight trips per year, as we have over the last decade or so.

“Global small cap, as an asset class, was in its infancy 10 years ago when we launched this strategy at my predecessor firm. We saw it as a fruitful hunting ground to exploit and we believe we have proven skilled at extracting alpha from the large and inefficient universe of listed companies under $10bn, while delivering strong absolute returns.”

Dean stated that Langdon’s portfolio will be positioned in companies that it believes have strong fundamentals and will continue to deliver cashflow growth of 10-15 per cent 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,” he added.

Langdon Equity Partners is majority owned by its investment team and supported by investment management group Pinnacle Investment Management, which provides provides distribution and fund infrastructure support.

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