Grandeur Peak Emerging Opportunities (GPEOX/GPEIX) hard closes on August 15th

David_Snowball

The advisor just filed the closure notice.

There are two fairly narrow exceptions:

Institutional Shareholders:

• 401k plans with an existing position
  
• Automatic rebalancing of an existing position (as long as purchase amounts are de minimis, as determined by Grandeur Peak)

Retail Shareholders (Direct Shareholders Only):

• Retirement Accounts
  
• Education Savings Accounts
  
• Minor Accounts (UTMA/UGMA)
  
• Pre-established Automatic Investment Plans
  

The fund reports about $370M in assets and YTD returns of 11.6%, which places it in the top 10% of all E.M. funds. There are a couple more G.P. funds in the pipeline and the guys have hinted at another launch sooner rather than later, but the next gen funds are more domestic than international.

For what that's worth,

David

AndyJ

Thanks for the news, David. Looks like they've changed the retirement plan/account hard-close exception since the GPGOX and GPIOX hard closes; earlier the exception included accounts at 'intermediary platforms,' and now it's 'direct shareholders only.'

Makes things a little more complicated for GPROX owners like moi who anticipated the rules staying the same as before for later hard closes, like is bound to happen to GPROX too in the not-too-distant future.

mrdarcey

In case this wasn't posted somehow, here is Grandeur Peak's 2nd quarter commentary. It's very candid and details parts of their process. Maybe I'm a sucker for this type of language, but it reinforced why I let them handle my money.

I'll probably have to bite the bullet and transfer my Roth GPROX holdings to the firm. No use holding something I can't add to.

Derf

@ David_Snowball: When time permits, could you find out if they plan to close GPROX in the manner of GPGOX-GPIOX ?
Also I was wondering how much work it takes to transfer part of a account to the mutual fund originator ? Schwab at this time.
Thanks for all replies .
Derf

mrdarcey

Just confirmed with Grandeur Peak that the policy is now a little more cut and dried. You have to hold account with them, but they will take transfers from a brokerage platform and allow you to continue to invest if held in an appropriate account.

jlev

You think you can transfer the retirement account funds after the hard close then add to them using the exception?

David_Snowball

Hi, Derf. The long term plan is to hard close all of their funds. They have an estimate of firm-wide capacity - that is, the total amount they can manage without beginning to hire outsiders - and they intend not to exceed that threshold. They've allocated a percentage of that figure to each portfolio, including those not yet launched, and close the fund as it approaches that figure. The firm-wide asset growth might accelerate the launch of the last few funds while there's still room for them, but I have no official word on that.

Hi, jlev. I doubt it and I certainly wouldn't bet on it. If you're wavering, call them. They're a small operation and you can end up with a serious answer pretty quickly.

For what it's worth,

David

LLJB

For some reason, and I can't find the information anymore, but I thought I had read they believed their firm-wide capacity was $3 billion. With $2.3B already in their current funds, and I believe 3 more funds to come, they are either going to have to be tiny funds or they must have decided they could manage a little more money. Luckily I have investments in 2 of the 4 funds so far and I will invest in any others that they launch because I think these guys are fantastic, but at such small sizes its conceivable that most of these funds may not be available even to existing investors for many years to come. Although I'm a big fan of the way they're managing their business, it doesn't make life easy when it comes to asset allocation.

TheShadow

Reply@LLBJ

David's August 1, 2013 commentary had a synopsis of the Grandeur Peak Funds that you mentioned.

http://www.mutualfundobserver.com/2013/08/august-1-2013/

jlev

David_Snowball said:

Hi, jlev. I doubt it and I certainly wouldn't bet on it. If you're wavering, call them. They're a small operation and you can end up with a serious answer pretty quickly.

Sent them an email 2 days ago and haven't heard back, would you recommend calling as a followup? or wait until next week?