This manager hunts the hunters

Mawer’s Jeff Mo seeks small companies with growth by acquisition strategies for his five-star Canadian fund

Michael Ryval 20 June, 2019 | 2:21AM

Crocodile

With the Canadian economy in the latter part of the cycle it’s difficult to determine the future earnings power of smaller companies. But Jeff Mo, a small-cap specialist at Calgary-based Mawer Investment Management Ltd., maintains that focusing on companies with competitive advantages that have continued to grow thanks to a well-executed acquisition strategy is a better way to build portfolios rather than from the top down.

“Growth by acquisition is one of the key hallmarks of many of our holdings,” says Mo, lead manager of $1.3 billion five-star rated Mawer New Canada A. At last count, 64% of the companies in the portfolio, by revenue, have used acquisitions as a way to grow their sales and earnings. “These companies have a strategy of acquiring other players in the same business. In principle, they believe that the whole will be greater than the sum of the parts.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Boyd Group Services Inc Ordinary Shares194.84 CAD-0.49
Enghouse Systems Ltd71.08 CAD-0.41

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Michael Ryval  

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