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I wondered if Geritz left Wasatch and subsequently entered into talks with GP as the letter to investors makes it sound. Just didn't ring entirely true to me.
I'm only guessing, but they had a relationship prior (from Wasatch) so likely stayed in touch. There were probably some informal discussions about it. Not sure if there was a non-compete when Geritz left, which is why it took some time... Again, I'm only speculating here.
A non-competing clause is commonly include as part of conditions of employment, but that is limited to a finite duration. It gets sticky if she left with sizable number of clients to Grandeur Peak. Nevertheless, it is good to see Laura Geritz to join Grandeur Peak.
Sven: either you or I missed the move. Seems to me she was only using G.P. to provide back-office & trade support. I believe she was starting her own fund. Rondure Globe Advisors.
Guys common. GP was formed by the blessings of Wasatch. I'm sure they are almost like Chevrolet and Buick. If GP messes up, I'm sure they will all go back to Wasatch.
Here is an excerpt from GP's letter to avoid any potential misunderstandings:
Rondure Global Advisors
Perhaps the most exciting announcement is the formation of a new joint venture with industry veteran Laura Geritz (CFA, MA). We worked with Laura for a number of years at Wasatch Advisors. She announced her departure from Wasatch earlier this year. When we learned of her decision to leave Wasatch we jumped at the chance to talk with her about the possibility of working together again. Just last week we jointly formed a new investment firm named Rondure Global Advisors.
Laura has a strong track record of performance for her clients. She played a key role as a lead portfolio manager on the Wasatch Emerging Markets Small Cap Fund, the Wasatch International Opportunities Fund, and as the founding PM on the Wasatch Frontier Emerging Small Countries Fund. Laura is a skilled investor who shares many of the same investment philosophies with us. She’s a bottom-up stock picker doing fundamental analysis focused on quality companies. She’s globally minded and is known for her killer travel schedule because she believes she can understand a company after seeing it on its home turf.
Laura will be the CEO of Rondure Global Advisors and will launch her own products under that name. She will also hire her own research and client team. Grandeur Peak will provide the back-office and trading support. Rondure will be co-located in the same office with Grandeur Peak, where we will sit side-by-side and work collaboratively. Rondure’s products will be more complementary than competitive with our existing products. I would describe Rondure’s investment focus as more “core” as compared to Grandeur Peak’s “growth” bent, and Rondure will not impact our liquidity constrained products as the new firm will focus on companies above $1.5 billion market-cap.
Grandeur Peak’s research team will remain focused on our own mission with minimal disruption, while benefitting from the wisdom and experience of a great investor. We’re thrilled to have Laura sitting with us and traveling with us. She brings a perspective that will help us see macro issues better, but what we’re most excited about is simply talking about individual companies with Laura and her team.
*******My question is she going to start/oversee another frontier market fund as I still own Wasatch's Frontier Emerging Small Countries Fund.
I think this is opportune time. The next year or so will determine direction of international / emerging markets in the wake of Trump. Right place at the right time is how the game is played. Timing is everything. I am calling *this* now - LG will invest at the bottom of the market.
I found it a little strange that the "most exciting" announcement is a joint venture with a previous colleague where GP is going to provide back-office and trading support. Huh? They just announced their CEO is changing, as is their Director of Research, and providing back-office and trading support is more exciting? I'd question their choice of words or I'd guess we'll eventually find out there's more going on here than they were able or willing to say at this point.
I wouldn't be totally surprised if bankrolling Ms. Geritz is how GP will grow AUM while remaining a small niche shop focused on small and micro-cap stocks.
And I hope she starts another Frontier Markets fund because WAFMX seems to have missed the post Brexit boat with Edgley in charge.
LLJB I have a small "steak" in WAFMX but don't follow it to closely. Did the change in managers justify the drop in nav or is it across the board drop , so to speak ? Derf
@Derf, unfortunately I don't follow it in enough detail to draw great conclusions either but I do have a couple of general takeaways. Some of the biggest contributors in Q3 were her picks but the fund has also been hurt by her choices in Africa. He's put a lot more in financial services than she ever did and IMHO it's too early to know whether that's the right move or not but her interest in non-financial names was part of the reason I liked the fund in the first place.
My comment about missing the post Brexit boat was just based on the performance since he took over (roughly) but your point is well taken that she shares responsibility for that and at this point it would be somewhere between hard and impossible to determine whether it's mostly because of Geritz or Edgley.
Guys common. GP was formed by the blessings of Wasatch. I'm sure they are almost like Chevrolet and Buick. If GP messes up, I'm sure they will all go back to Wasatch.
They may have had Wasatch's blessing, but GP founders left to form their own shop because they did not like the direction Wasatch was heading in terms of the divided (domestic/international) research teams.
As a WAFMX investor, performance over the last year has been disappointing. However, I would not be too quick to blame the manager change. WAFMX was already significantly lagging before Geritz's leaving was announced. I would certainly be interested in a new frontier markets offering from Geritz, but just something to keep in mind.
@JoJo26 I'm sure "Vice Presidents" of Chevrolet and Buick kinda had the same logic. It's good to head your own firm, you keep more of your profits that way, especially if you feel you are "it". Nothing wrong with that, just saying.
@JoJo26 I'm sure "Vice Presidents" of Chevrolet and Buick kinda had the same logic. It's good to head your own firm, you keep more of your profits that way, especially if you feel you are "it". Nothing wrong with that, just saying.
No one is in this for charity.
That doesn't change the fact that GP was formed because of a difference of opinion. I find it highly unlikely that they would rejoin Wasatch if, for some reason, GP ceased to exist.
Comments
Regards,
Ted
Derf
Rondure Global Advisors
Perhaps the most exciting announcement is the formation of a new joint venture with industry veteran Laura Geritz (CFA, MA). We worked with Laura for a number of years at Wasatch Advisors. She announced her departure from Wasatch earlier this year. When we learned of her decision to leave Wasatch we jumped at the chance to talk with her about the possibility of working together again. Just last week we jointly formed a new investment firm named Rondure Global Advisors.
Laura has a strong track record of performance for her clients. She played a key role as a lead portfolio manager on the Wasatch Emerging Markets Small Cap Fund, the Wasatch International Opportunities Fund, and as the founding PM on the Wasatch Frontier Emerging Small Countries Fund. Laura is a skilled investor who shares many of the same investment philosophies with us. She’s a bottom-up stock picker doing fundamental analysis focused on quality companies. She’s globally minded and is known for her killer travel schedule because she believes she can understand a company after seeing it on its home turf.
Laura will be the CEO of Rondure Global Advisors and will launch her own products under that name. She will also hire her own research and client team. Grandeur Peak will provide the back-office and trading support. Rondure will be co-located in the same office with Grandeur Peak, where we will sit side-by-side and work collaboratively. Rondure’s products will be more complementary than competitive with our existing products. I would describe Rondure’s investment focus as more “core” as compared to Grandeur Peak’s “growth” bent, and Rondure will not impact our liquidity constrained products as the new firm will focus on companies above $1.5 billion market-cap.
Grandeur Peak’s research team will remain focused on our own mission with minimal disruption, while benefitting from the wisdom and experience of a great investor. We’re thrilled to have Laura sitting with us and traveling with us. She brings a perspective that will help us see macro issues better, but what we’re most excited about is simply talking about individual companies with Laura and her team.
*******My question is she going to start/oversee another frontier market fund as I still own Wasatch's Frontier Emerging Small Countries Fund.
I wouldn't be totally surprised if bankrolling Ms. Geritz is how GP will grow AUM while remaining a small niche shop focused on small and micro-cap stocks.
And I hope she starts another Frontier Markets fund because WAFMX seems to have missed the post Brexit boat with Edgley in charge.
Derf
My comment about missing the post Brexit boat was just based on the performance since he took over (roughly) but your point is well taken that she shares responsibility for that and at this point it would be somewhere between hard and impossible to determine whether it's mostly because of Geritz or Edgley.
No one is in this for charity.
http://www.prweb.com/releases/2016/11/prweb13834644.htm