Lennox takes position in HUB24

Lennox Capital Partners has initiated a position in platform HUB24 in both its Australian Small Companies and Microcap funds, taking advantage of the company’s share price fall.

The firm, run by Liam Donohue and James Dougherty, said it had a mid-range position in the portfolio administration company and could increase this in in the future.

Shares in HUB24 fell sharply during March, falling 42% from the start of the year to its bottom on 16 March. As of 04 June, the firm’s shares had returned 0.9% since the start of 2020.

Donohue said the company was attractive due to the ongoing move in assets away from the Big Four platforms such as AMP and Commonwealth Bank towards independent players such as HUB24.

“We already liked the company but had not been able to justify the valuation but the market decline meant there was an opportunity,” said Donohue.

“HUB24 has a tailwind from the huge amount of money on platforms which is growing in line with the growth in superannuation by around 5%-6% per annum. There has been a real shift in sentiment away from the encumbents since the Royal Commission which is historically where the money had flowed.

“Today we are seeing that money go to the independent providers and this is accelerating.”

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Source: Lennox takes position in HUB24