In this video, our experienced ASX smaller companies team explain how they find mispriced opportunities
An excerpt from the team’s interview
BEYOND the familiar territory of the ASX 100 lies a universe of opportunity in smaller companies.
In this video, Pendal Smaller Companies Fund co-portfolio managers Lewis Edgley and Patrick Teodorowski explore how investors can benefit from the breadth and diversity of Australia’s small-cap market.
For investors seeking more than just the familiar names on the ASX 100, Lewis believes small caps offer a world of untapped potential.
“When we look at the ASX 100, it’s very dominated by financials and resources,” he explains. “Whereas the Small Ordinaries Index really is a very broad and diverse set of investment opportunities.”
This diversity is key — according to Lewis, there are “literally hundreds, if not thousands, of companies that we can look at”.
“Our job is to search through them and find where mispriced opportunities exist,” he says. “At different points in the economic cycle, different sectors will be doing better and doing worse. That gives us opportunities to find money-making opportunities regardless of what the economy is doing.”
According to Patrick, small caps can also offer a broad set of industry exposures that investors might not get from large-cap Australian companies.
“We invest in companies that have very long runways for growth,” he adds. “You can also invest in businesses before they can become household names and enter into the major indices.”
With central banks beginning to cut rates globally, Lewis sees a turning point for ASX-listed small caps.
“We think there’s a scenario over the next 12 months where the handbrake comes off. As a category, things get a little easier,” he explains.
Ultimately, the team’s edge lies in its relentless research — drawing from the resources of a 19-strong Australian equities team.
“We are bottom-up stock pickers,” says Lewis. “In small caps, our team has decades of experience. We’re always looking for that information edge and when we find it, we’re willing to exploit it.”
Get to know our portfolio managers better in these individual profile videos:
About Pendal
Pendal is a global investment management business focused on delivering superior investment returns for our clients through active management.
Pendal’s Australian equities team is one of the most experienced and well-resourced equities teams in Australia.
Contact a Pendal key account manager
Find out more about Pendal’s Australian equities capabilities
In this short video, Pendal’s Income and Fixed Interest team outline the expertise, diversity of thought and disciplined decision-making processes that drive outcomes for clients
An excerpt from the team’s interview
Pendal’s Income and Fixed Interest team bring together deep experience, specialised knowledge and a collaborative structure that help set it apart in the market.
In this video, the four lead portfolio managers — Amy Xie Patrick, Tim Hext, Steve Campbell and George Bishay — explain the advantages of specialisation.
“We don’t want people covering too much – true expertise takes time and depth,” says Tim Hext, head of government bond strategies.
“We focus on depth, and we back that with strong quantitative models and real-world insight from markets, central banks and beyond.”
Pendal maintains a unified approach to cash, credit, income and government bond strategies which encourages richer discussions and stronger risk awareness.
“We’re constantly cross-pollinating ideas,” says Steve Campbell, head of cash strategies. “Every portfolio decision benefits from diverse perspectives and a shared understanding of risk.”
Further supporting this model is the team’s top-down process, which George Bishay – head of credit and sustainable strategies – says blends quantitative modelling with real-world experience and market insight.
“It’s this combination that helps us actively manage risk and seize opportunity,” he says.
Whether supporting institutions, advisers or individual investors, the Income and Fixed Interest team prioritises strategic thinking, active risk management and – importantly – strong client partnership.
“From sovereign wealth funds to everyday investors, we work hard to understand each client’s needs and help them build stronger portfolios for the long term,” says Amy Xie Patrick, head of income strategies.
Get to know our portfolio managers better in these individual profile videos:
Find out about
Pendal’s Income and Fixed Interest funds
About Pendal
Pendal is a global investment management business focused on delivering superior investment returns for our clients through active management.
Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.
Pendal equities analyst RACHEL FOLDER recently joined Livewire Markets to discuss her picks and predictions for the year ahead
SMALL-CAPS analyst Rachel Folder recently joined other Aussie fund managers for Livewire’s 2025 Outlook Series to discuss the outlook for Australian shares in the year ahead.
Despite a resurgence of risks and the impact of political changes in the US last year, Rachel says the market’s current state is strong and that things are looking “pretty good” for 2025.
In the full interview below, Rachel reveals:
- Her top pick for growth in 2025
- An industry set to break out
- A stock she would avoid
- A contrarian stock idea
- A stock she would choose if she could hold just one in her portfolio this year.
See more on Livewire Markets
About Rachel Folder
Rachel is an investment analyst with Pendal’s Smaller Companies team, providing fundamental analysis on a range of companies within the ASX ex-100 universe.
Previously, Rachel was an Investment Analyst covering smaller companies for NAOS Asset Management and First Sentier Investors, where she began her career in their graduate program.
Rachel holds a Bachelor of Commerce (Actuarial Studies and Financial Economics) from the University of New South Wales and is a CFA Charterholder.
Pendal is an investment management business focused on delivering superior investment returns for our clients through active management.
Pendal’s head of income strategies AMY XIE PATRICK joined Livewire Markets to answer some of the market’s quick-fire questions
- Why bonds, why now? Pendal’s income and fixed interest experts explain
- Browse Pendal’s fixed interest funds
PENDAL’S Amy Xie Patrick featured on Livewire’s Signal or Noise to discuss some of the burning topics impacting the Australian fixed income market.
Tune in to hear from Amy and fellow panelists Shane Oliver (AMP) and Michael Price (Ausbil) about the implications of a changing interest rate cycle, the future for term deposit returns, and why now may be the time for intelligent investors to consider some “out-of-consensus” income-paying opportunities.
See more on Livewire Markets
About Amy Xie Patrick and Pendal’s Income and Fixed Interest team
Amy is Pendal’s Head of Income Strategies. She has extensive expertise and experience in emerging markets, global high yield and investment grade credit and holds an honours degree in economics from Cambridge University.
Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia. The team oversees some $20 billion invested across income, composite, pure alpha, global and Australian government strategies.
Find out more about Pendal’s fixed interest strategies here
About Pendal Group
Pendal is a global investment management business focused on delivering superior investment returns for our clients through active management.
In this video profile, Pendal’s head of government bond strategies TIM HEXT explains why the case for bonds – and active management – has never been stronger
An excerpt from Tim’s interview
In this video, Tim Hext – head of government bond strategies at Pendal – shares insights drawn from a 30-year career spanning trading desks, bank balance sheets and state government funding.
His deep understanding of both the macro conditions and inner workings of bond markets have helped shape the strategy behind the Pendal Government Bond Fund.
Tim explains how Pendal’s active management approach can help capture value beyond the macroeconomic view, through the skillful selection of securities from across the government bond universe.
“Even in volatile conditions, government bonds give investors the flexibility to respond – to rebalance, or to lean into opportunity,” he says.
“We position for where the economy is going – not where it’s been – and we go deep on security selection. Knowing how different states fund and price their debt helps us capture opportunities others miss.”
Watch the video to learn more about Tim and Pendal’s active approach to fixed-income investing.
Get to know the rest of the team better in these individual profile videos:
Find out about
Pendal’s Income and Fixed Interest funds
About Tim Hext and Pendal’s Income & Fixed Interest boutique
Tim Hext is a Pendal portfolio manager and head of government bond strategies in our Income and Fixed Interest team.
Tim has extensive experience in banking, financial markets and funding including senior positions with NSW Treasury Corporation (TCorp), Westpac Treasury, Commonwealth Bank of Australia, Deutsche Bank, Bain & Co and Swiss Bank Corporation.
Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.
Find out more about Pendal’s fixed interest strategies here
About Pendal
Pendal is a global investment management business focused on delivering superior investment returns for our clients through active management.
In 2023, Pendal became part of Perpetual Limited (ASX:PPT), bringing together two of Australia’s most respected active asset management brands to create a global leader in multi-boutique asset management with autonomous, world-class investment capabilities and a growing leadership position in ESG.