Discovery Strategy

Overview

HMC’s Discovery strategy seeks to generate long-term capital growth primarily through investments in small and microcap stocks in the U.S. and Canada. Our strategy is to identify “hidden gems” or deeply undervalued companies and assets among the vast number of smaller capitalization companies in North America. We perform rigorous due diligence and may take concentrated positions in less liquid securities, seeking to build large ownership stakes over time. By maintaining a focused portfolio, we are able to work closely with each company to see that it reaches its fullest potential.

Investment Team

Kenan H. Lucas
Managing Director and Portfolio Manager

Kenan H. Lucas is Managing Director and Portfolio Manager of the Harbert Discovery Fund. Mr. Lucas also serves on the Boards of Qumu Corporation and Streamline Health Solutions. Previously, Mr. Lucas worked at Swander Pace Capital, a middle-market private equity firm. At Swander Pace, he closed a number of acquisitions and re-financings, evaluated investment opportunities, and monitored portfolio companies, advising them on strategy, growth initiatives, acquisition opportunities, and corporate financing options. Prior to Swander Pace, Mr. Lucas was at Cowen and Company, a middle-market investment bank, where he advised companies on sell-side transactions and strategic alternatives. Mr. Lucas earned an MBA from the Darden School of Business at the University of Virginia, where he received the Faculty Award for Academic Excellence. Mr. Lucas has a BA in Economics, magna cum laude, from Vanderbilt University.

Mr. Lucas is an active member of the Cathedral Church of the Advent.

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Zachary P. Turnage, CFA
Director of Research

Mr. Turnage is the Director of Research for HMC’s Discovery Fund investment team. Prior to joining HMC in October 2007, Mr. Turnage was Portfolio Manager & Equity Analyst for the Retirement Systems of Alabama (“RSA”). In this role, he co-managed the RSA Small Cap Active Portfolio and held research responsibilities for numerous sectors. From 2003 to 2005, Mr. Turnage was employed with Westwood Holdings Group, where he held the position of Assistant Vice President, served on the Small Cap Value portfolio management team, and worked as an analyst supporting all of the Westwood Equity Portfolios. Prior to Westwood, Mr. Turnage held various positions with AmSouth Asset Management Company including Portfolio Manager for the AmSouth Value Opportunity Portfolio and as an Equity Analyst for its value team. Mr. Turnage is a CFA charter holder and holds a Bachelor of Science degree in Business Administration from Samford University and a Master of Business Administration degree in Finance from Auburn University Montgomery. Mr. Turnage currently serves as Board Chairman for the Samford University Brock School of Business Economics, Finance and Quantitative Analysis Advisory Board. Mr. Turnage is a former President and Board member of the CFA Society of Alabama.

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Morgan O. Ogilvie III
Associate

Morgan O. Ogilvie III is an Associate of the Harbert Discovery Fund. Prior to joining HMC in 2017, Mr. Ogilvie was an Associate in the corporate and investment bank at SunTrust Robinson Humphrey where he primarily focused on capital markets transactions in the healthcare services and industrial sectors. Mr. Ogilvie has a MS in Finance and a BS in Finance and Economics from the University of Alabama.

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Contact
HARBERT DISCOVERY STRATEGY

2100 Third Avenue North, Suite 600
Birmingham, Alabama 35203

Contact:
irelations@harbert.net
205.987.5500