The SEC requires managers to submit plans for their new funds 75 days before they’re offered for sale to the public. This month finds 16 new funds in the pipeline. The most intriguing are the two Rondure funds, launched by a partnership between former Wasatch star manager Laura Geritz and the folks at Grandeur Peak. We wrote in December about the partnership. One of pure EM, the other global and both are positioned to hold stocks that are somewhat larger and more seasoned than we associate with Grandeur Peak. Artisan, which rarely launches a bad fund, has registered plans for its niche-est fund, Artisan Thematic, led by an experienced hedge fund guy.
Artisan Thematic Fund
Artisan Thematic Fund will seek long-term capital appreciation. The plan is to invest in securities which stand to benefit from “thematic trends” that might drive above-market rates of growth for the next 3-5 years. The portfolio will be all-cap, global and focused. The fund will be managed by Christopher Smith who had previously worked for a series of private partnerships, most recently Kingdon Capital. The minimum initial expense ratio will be 1.50%. The minimum initial purchase will be
BNP Paribas AM Emerging Markets Equity Fund
BNP Paribas AM Emerging Markets Equity Fund will pursue long-term capital appreciation. The plan is to invest in EM stocks, specifically “quality growth companies with strong management, corporate governance and financial health.” The fund will be managed by Don Smith, Rick Wetmore, and Quang Nguyen. The initial expense ratio will be 1.15%. The minimum initial investment for retail shares will be $2,500. This is one of a suite of six unrelated BNP Paribas funds launching simultaneously. The others focus on mortgage-backed securities, US small cap stocks, EM debt, inflation-linked bonds and absolute return fixed-income. They’re all covered in the same prospectus.
GMO Climate Change Fund
GMO Climate Change Fund will pursue “high total return,” a phrase I haven’t seen before. The plan is to invest in the stock of firms which stand to benefit from efforts to “curb or mitigate the long-term effects of global climate change, to address the environmental challenges presented by global climate change, or to improve the efficiency of resource consumption.” As with infrastructure funds, that represents a pretty diverse group. The fund may have a lot of industry or sector concentration and may also hold significant amounts in cash or Treasury bonds. The fund will be managed by two members of GMO’s Focused Equity team, Thomas Hancock and Lucas White. The initial expense ratio has not yet been disclosed.The minimum initial investment will be between $125 million and $300 million, depending on share class.
Harbor Strategic Growth Fund
Harbor Strategic Growth Fund will pursue long-term capital gains. Harbor is setting this up as a shell for the sole purpose of having a fund into which they’ll merge Mar Vista Growth in March 2017, an entirely-reputable little fund. The fund will be managed by Mar Vista’s existing team. The initial expense ratio for Investor shares will be 1.08%. The minimum initial investment will be $2,500, reduced to $1,000 for various tax-advantaged accounts.
Mirova Global Green Bond Fund
Mirova Global Green Bond Fund will pursue total return, through a combination of capital appreciation and current income, by investing in green bonds. The fund will be managed by Christopher Wigley and Marc Briand of Natixis. The initial expense ratio has not been disclosed; there will be a sales load but load-waived shares are available. The minimum initial investment will be $2,500.
Redwood AlphaFactor Core Equity Fund
Redwood AlphaFactor Core Equity Fund will pursue long-term total return. The plan is to replicate the performance of their AlphaFactor Focused Index, which ranks stocks at least in part on “net share count reduction, free cash flow growth, dividend yield, volatility and debt/asset ratios.” The fund will be managed by the senior folks at Redwood, Michael Messinger, Michael Cheung, and Richard Duff. The initial expense ratio has not been disclosed. The minimum initial investment will be $10,000.
Rondure New World Fund
Rondure New World Fund will pursue long-term capital appreciation. The plan is to find “great companies at good prices and good companies at great prices” with ties to the emerging markets. Those might include both firms domiciled in emerging or frontier markets, or those whose earnings are tied to the EMs. The fund will invest primarily in stocks with market caps of $1.5 billion an up, though the occasional IPO might slip in. The fund will be managed by Laura Geritz who, from 2006-2016, managed or co-managed a variety of Wasatch funds, including Wasatch Frontier Emerging Small Countries Fund (WAFMX, 2012-16), Wasatch International Opportunities Fund (WAIOX, 2011-16) and Wasatch Emerging Markets Small Cap Fund (WAEMX, 2009-15). The initial expense ratio has not yet been disclosed. The minimum initial investment will be $2,000 for both Institutional and Investor class shares, with the minimum reduced to $1,000 for accounts established with an automatic investing plan.
Rondure Overseas Fund
Rondure Overseas Fund will pursue long-term capital appreciation. The plan is to find “great companies at good prices and good companies at great prices” from countries, developed and developing, around the world. The fund will invest primarily in stocks with market caps of $1.5 billion an up, though the occasional IPO might slip in. The fund will be managed by Laura Geritz who, from 2006-2016, managed or co-managed a variety of Wasatch funds, including Wasatch Frontier Emerging Small Countries Fund (WAFMX, 2012-16), Wasatch International Opportunities Fund (WAIOX, 2011-16) and Wasatch Emerging Markets Small Cap Fund (WAEMX, 2009-15). The initial expense ratio has not yet been disclosed. The minimum initial investment will be $2,000 for both Institutional and Investor class shares, with the minimum reduced to $1,000 for accounts established with an automatic investing plan.
TCW/Gargoyle Dynamic 500 Collar Fund
TCW/Gargoyle Dynamic 500 Collar Fund will pursue long-term capital appreciation “with limited and defined risk of significant loss compared to the S&P 500 Index.” The plan is to buy exposure to the S&P 500, buy put options to hedge their SPX exposure and sell call options to hedge their puts. The fund will be managed by Joshua Parker and Alan Salzbank, Gargoyle’s founders. The initial expense ratio has not yet been disclosed. The minimum initial investment will be $5,000.
TCW/Gargoyle Dynamic Market Neutral Fund
TCW/Gargoyle Dynamic Market Neutral Fund will pursue long-term capital appreciation regardless whether the level of the general [U.S.] stock market increases or decreases. The plan is to buy exposure to the S&P 500 and hedge it with short-term out-of-the-money SPX call options. The fund will be managed by Joshua Parker and Alan Salzbank, Gargoyle’s founders. The initial expense ratio has not yet been disclosed. The minimum initial investment will be $5,000.
TCW Long/Short Fundamental Value Fund
TCW Long/Short Fundamental Value Fund will pursue long-term capital appreciation. The plan is to build your basic long-short portfolio but to incorporate in it this advisor’s particular magic. (No, it’s not immediately clear what that might be.) The fund will be managed by Jeremy Zhu, Vincent Staunton, and Marty Lane of TCW. The initial expense ratio has not yet been disclosed. The minimum initial investment will be $5,000.
