The Lakehouse Small Companies Fund

The Lakehouse Small Companies Fund

The Lakehouse Small Companies Fund ARSN 615 265 864 (Fund) is an open-ended fund for retail and wholesale investors, which will focus on the small-cap segment in Australia and New Zealand.

Investment Manager

Lakehouse Capital has been appointed as the investment manager (Investment Manager) of the Fund and is the funds management arm of The Motley Fool Australia.

Investment Strategy

The Investment Manager’s strategy for the Fund is to invest in a high conviction portfolio of 15 to 30 small companies listed in Australia and New Zealand. The Fund will typically hold 5% to 15% of its capital in cash, depending on the Investment Manager’s opinion of the prevailing opportunity set, and may hold up to 10% of its capital in unlisted companies expected to IPO within 12 months. The Fund will not borrow, sell short, or use derivatives.

Investee companies are expected to hold the following attributes:

  • Strong positions in growing markets.
  • Pricing power with customers and suppliers.
  • Durable competitive advantages grounded in: scale, strong brands, network effects, or high customer switching costs.  
  • Aligned and experienced management teams with strong track records of capital allocation.
  • Conservative balance sheets.
  • Attractive valuations that afford upside to the Investment Manager’s estimate of fair value.

The Investment Manager filters potential investments through a checklist of qualitative and quantitative factors before proceeding with a deeper exploration of the company’s history, business model, leadership, supply chain, competition, financials, risks, and valuation.

The Fund will not automatically sell an investment that has grown into inclusion in the S&P/ASX 100 provided the investee company continues to meet the criteria above as the long-term holding of successful investments is part of the Investment Manager’s strategy.

Further Information

The Investment Manager aims to provide Investors with twice-yearly distributions through investment in an actively managed and diversified portfolio of assets, while affording flexibility to Investors who wish to withdraw from the Fund.

The fund’s objective is to outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling 5-year periods.

A copy of the PDS and Additional PDS is available from the right hand side of this page. Should you wish to invest, please click on the Application Form link on the right hand side of the page and complete the online application process.