Ryder Capital believes it can buck the trend of listed investment companies (LICs) winding up, merging, or converting to other structures. The Sydney-based firm’s flagship fund was a top performer last year, returning 61 per cent and lifting its three-year performance to 26.6 per cent annually. Ryder Capital also attracted shareholders by moving to a quarterly dividend, from a half-yearly distribution previously. Ryder Capital is a listed investment company that focuses on ASX small-cap stocks, primarily catering to ultra-high net worth individuals. The company aims to deliver consistent, double-digit gains through a concentrated portfolio strategy.
Despite strong performance, Ryder Capital’s shares trade at a discount of 12 per cent to its net tangible assets (NTA). Managing Director Peter Constable attributes this to factors including the LIC sector’s struggles and the company’s relatively small size. The company manages $190 million, and its client base consists mainly of ultra-high net worth individuals. However, Constable believes consistent quarterly income and strong returns will drive the company back to NTA value. He also highlights Ryder’s commitment to maintaining its dividend payout.
Ryder’s success stems from minimising mistakes, ignoring market trends, and trusting the team’s judgement. This is reflected in its concentrated portfolio of up to 20 small-cap stocks. Recently, Ryder exited Humm Group due to governance concerns and increased its stake in Adore Beauty. Constable aims to increase the fund’s cash level to between 15 and 20 per cent in the coming months to prepare for market volatility. While a repeat of last year’s 50 per cent return is unlikely, Constable would be very pleased with a 20 per cent return this year. Ryder Capital declared its first quarterly dividend of 3¢ a share, fully franked, for the three months to December 31, which Constable says he’s committed to maintaining for the entire 2026 financial year.
