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How ’The Speculator’s Diary’ got Ben Griffiths got hooked on small caps (and why he thinks we’re in a ’pause rally’)

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Episode notes

Every year,  fund manager Eley Griffiths invites stockbrokers from across the country to a lavish dinner. In the cutthroat world of the share market, stockbrokers rarely get treated by their clients. Eley Griffiths, the $1.2 billion small company manager known affectionately as EGG, is a rare breed.

The fact that EGG is currently celebrating its 20th year is a testament to the value that everyone contributes to the process of grinding out returns in the volatile small company market. It is a deliberate strategy and reflects the founder's personality. 

Ben Griffiths is a 30-year-plus veteran of the market. The son of a comedian, Griffiths has always loved an audience, and appreciated their participation in the show, whether it be the speech at the annual dinner, or the day-to-day process of picking stocks.

 

Leaving school, Griffiths found himself on the trading floor of the ASX. He's old enough to remember the 87 stock market crash. From this came many lessons, including a desire to switch to funds management. He found a home as a dealer at Mercantile Mutual and was planted in the middle of a treasure trove in the form of Greg Matthews, David Paradice, Peter Mellett, and John Morgan. He progressed from dealer to analyst, and then portfolio manager. At the turn of the century, he had a brief stint at BT where he worked with Brian Eley, and before long the two had hatched a plan to form EGG and do it their way.

Looking back over 20 years, there were some difficult times. The first 12 months were a real grind, and then years later, Eley became seriously ill before passing away in 2018. Through all this EGG has moved forward with Griffiths at the helm. In the 20th year, the group is branching out into the mid-cap fund. No doubt there are plenty more returns, and broker dinners to be had.

Time stamps

• 5:00 The highs and lows of 20 years in small caps
• 9:50 The powerful role of Ben Griffiths’ grandmother
• 13:15 Working on the trading floor in the 1980s
• 20:15 His move into institutional broking
• 26:40 “A richer training ground you could not have hoped for”
• 32:00 A “blank sheet” opportunity at BT
• 42:30 Reflections on Lehman Brothers’ collapse
• 48:00 The loss of Brian Eley
• 52:00 His market outlook for 2024.