James Spenceley, the telecommunications industry veteran, is bringing to a managed fund his knack of buying value companies, a skill he developed as founder and CEO of Vocus.
Spenceley has joined with fund manager Gary Rollo to launch MHOR Asset Management, a diverse portfolio of high-growth smaller companies listed, or soon to list, on the ASX.
“Small caps are often overlooked by investors because it takes significant work to assess growth potential,” says 39-year-old Spenceley, whose wealth this year is estimated at $45 million, up $8 million on 2015.
“The market is inefficient for them as very few brokers cover stocks in early stages, and this creates huge opportunities.”
MHOR, meaning great in Gaelic, is Spenceley’s first venture since founding Vocus Communications 10 years ago, turning a $25 million small cap into a multi billion dollar ASX100 listed company.
Gary discovered Vocus as a fund manger at Renaissance Asset Management and was one of Vocus’ earliest institutional investors.
Spenceley says he would present results from Vocus to Rollo three to four times a year.
“Gary always worked the hardest to understand my business and asked the toughest questions,” says Spenceley.
At Vocus, Spenceley made a dozen acquisitions for a combined value of greater than $1 billion.
Rollo says he was always impress by Spenceley’s strong vision for Vocus.
“Whether it’s buying a business or investing in a business, the principles are the same,” says Rollo.
The fund has already raised $10 million, with the minimum investment at $20,000, and is heading toward $300 million to $350 million.
“Having built a billion-dollar business before, we don’t plan to be considered a boutique fund for long,” says Spenceley
“If I had to give a target vision for what success will mean for MHOR, it would be to create a second billion-dollar business in my career.”
Spenceley still has a role at Vocus, helping the merger of the M2 Group but he is no longer CEO.
Vocus last week reported a 455% lift in revenue to $838.8 million through the acquisition of Amcom and the merger with M2 Group. Underlying profit was up 460.5% to $101.7 million.