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Considering selling out of my GP exposure. They are trying to do too much.
To me it looks like they are trying to do more with the research they have already done. This appears to be a value fund run by small cap growth investors. They already have discovered companies around the globe that do not easily fit into the categories to which Grandeur Peak has already created. Some of these are already stock holdings in some existing Grandeur Peak funds, but making up a smaller percentage of the whole than they would in the new fund. So it looks to me that they are seeking to benefit further from work already done.
I thought about investing in new fund , but after reading some of the prospectus I think I'll pass. It seems to have to many ways that the fund can invest ! Any thoughts on this new fund would be appreciated . Derf
Agree JoJo -- I feel uneasy about this. Hope they're not going the way of Royce, Fairholme, etc. Land grab with the resulting distractions, tapering performance, etc.
I would like to add some words to everyone's vocabulary
Wasatchification is being followed by Grandeurpeakery. Let's hope it does not end like Royceleum (okay I like the first two, but the last one could use improvement)
Translated - Pretending to act in the best interest of shareholders by closing one fund and launching another fund which will all ultimately converge to the same risk / return profile over any meaningful period of time.
People, look at the markets and the dollar. If dollar weakens buy this fund, exit with 20% returns. It will fund your next vacation. We need to be as mercenary about this as the mercenaries.
Some funds are "sure things" out the gate because everyone believes they will be. Get In, Get Out.
I am surprised and a bit baffled by the suspicion and worry. In doing research on companies that fit the profile and mandates of their existing funds Grandeur Peak would discover quality companies that do not. I don't see that creating a suitable package in the form of a new fund is in any way troublesome, or trying to do too much, especially because The Global Contrarian Fund has been in the works since "Day One". If anyone would like to explain the danger I would be most grateful. Perhaps I am missing something. But at the moment given the (limited ) information I have, the creation of this fund does not seem to me to be reckless or ill advised or worrisome.
I found the following on einnews.com:
Randy Pearce, Chief Investment Officer, provided additional background: “The Global Contrarian Fund has been on our product plan since the inception of the firm. Finding high quality undiscovered and undervalued companies is part of our daily work. Some of these opportunities don’t fit neatly into our growth-focused funds, so we tread lightly or wait for growth to return before buying. The Global Contrarian Fund will allow us to concentrate a portfolio in these kinds of very interesting long-term investments. The general market shift towards passive investing (ETFs and Index Funds) makes this product additionally interesting because there are plenty of good small/micro-cap companies that aren’t captured by passive products and are trading at even more appealing valuations. We’ve waited eight years to launch this fund. The timing feels right both for our team and the market opportunity. When we get a contrarian position right, we believe it will lead to greater price appreciation due to the dual effect of earnings growth and Price/Earnings expansio
GP is a solid shop, but everything except their stalwarts funds are so damn expensive. This fund isn’t going to set the world on fire. GPMCX has surprised me in its lack of ability to outperform. Honestly the only people getting rich off of GP funds are GP
I'll admit, I'm concerned by the continued launching of new GP products. When GP launched i believe they stated $2B AUM cap across all products. I think they are now in excess of $3B and heading to $4B AUM. The performance of the Micro Cap has been lackluster given the large expenses.
I was an enthusiastic early adopter of GP, including GPMCX. I also had positions in GPGOX and GPIOX. I sold of all these funds and I remember commenting here about my dissatisfaction with GP management's explanation for why most of their funds had lost their mojo. The assignment of "guardians" to the funds suggested to me that adults had been brought in to discipline the kids.
I tend to be literal minded. For me, a micro-cap global fund is already a contrarian play, so I find it hard to understand why GP needs another fund to gather odd-ball companies. I never thought "stalwarts" made any sense either, but again, that may be me. In my portfolio, WAGOX replaced GPGOX, and I added to BCSVX, because Brown Capital knows small-mid caps. FWIIW, Driehaus Small Cap Growth has received more of my recent dough than the venerable BCSIX. I admire clarity of thought and expression; I have always reacted with skepticism at some of GP's reports and narratives because of language that seemed so sincere and transparent that it produced the opposite reaction. If you try to make me a believer, I'm likely to climb even higher on my agnostic's ladder lest your entreaties soil my shoes. Long live Voltaire.
I believe that they did mention in the beginning that they were going to open a "Fallen Angel" type of fund back in 2015. They just got around to opening it; it should not be a surprise.
Check out the links in which two funds were still on the drawing board:
I am surprised and a bit baffled by the suspicion and worry. In doing research on companies that fit the profile and mandates of their existing funds Grandeur Peak would discover quality companies that do not. I don't see that creating a suitable package in the form of a new fund is in any way troublesome, or trying to do too much, especially because The Global Contrarian Fund has been in the works since "Day One". If anyone would like to explain the danger I would be most grateful. Perhaps I am missing something. But at the moment given the (limited ) information I have, the creation of this fund does not seem to me to be reckless or ill advised or worrisome.
I found the following on einnews.com:
Randy Pearce, Chief Investment Officer, provided additional background: “The Global Contrarian Fund has been on our product plan since the inception of the firm. Finding high quality undiscovered and undervalued companies is part of our daily work. Some of these opportunities don’t fit neatly into our growth-focused funds, so we tread lightly or wait for growth to return before buying. The Global Contrarian Fund will allow us to concentrate a portfolio in these kinds of very interesting long-term investments. The general market shift towards passive investing (ETFs and Index Funds) makes this product additionally interesting because there are plenty of good small/micro-cap companies that aren’t captured by passive products and are trading at even more appealing valuations. We’ve waited eight years to launch this fund. The timing feels right both for our team and the market opportunity. When we get a contrarian position right, we believe it will lead to greater price appreciation due to the dual effect of earnings growth and Price/Earnings expansio
Candidly, I do not believe this was in their plan since "day one." In my professional capacity I have talked with GP since the early days and this and the Micro Cap fund were never discussed with investors before. If the plan had been shared at launch, my take would be different, but this just seem like product proliferation and they will lose sight of the ultimate goal - generate returns for clients.
What I expect having analyzed the funds and this new one is GP Global Reach--https://grandeurpeakglobal.com/documents/grandeur-peak-global-reach-fund-fs-20190630.pdf --but with a value tilt--more emerging markets stocks, more financial, materials, commodity and industrial stocks and less technology and healthcare stocks. It will probably be mostly small and micro, but with some mid and large-caps thrown in like Global Reach, only lower valuation multiples and less growth. It also seems like a way to compete with Wasatch Microcap Value, although with much more overseas. In fact, I could imagine them looking at every stock they include in Global Reach and taking the cheaper half and putting them in this fund.
Comments
https://www.sec.gov/Archives/edgar/data/915802/000139834419016535/fp0045773_485bpos.htm
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement 1.35%
This seems to me like a good idea, not a problem.
Any thoughts on this new fund would be appreciated .
Derf
Sometimes enough is enough.
Wasatchification is being followed by Grandeurpeakery. Let's hope it does not end like Royceleum (okay I like the first two, but the last one could use improvement)
Translated - Pretending to act in the best interest of shareholders by closing one fund and launching another fund which will all ultimately converge to the same risk / return profile over any meaningful period of time.
People, look at the markets and the dollar. If dollar weakens buy this fund, exit with 20% returns. It will fund your next vacation. We need to be as mercenary about this as the mercenaries.
Some funds are "sure things" out the gate because everyone believes they will be. Get In, Get Out.
I found the following on einnews.com:
Randy Pearce, Chief Investment Officer, provided additional background: “The Global Contrarian Fund has been on our product plan since the inception of the firm. Finding high quality undiscovered and undervalued companies is part of our daily work. Some of these opportunities don’t fit neatly into our growth-focused funds, so we tread lightly or wait for growth to return before buying. The Global Contrarian Fund will allow us to concentrate a portfolio in these kinds of very interesting long-term investments. The general market shift towards passive investing (ETFs and Index Funds) makes this product additionally interesting because there are plenty of good small/micro-cap companies that aren’t captured by passive products and are trading at even more appealing valuations. We’ve waited eight years to launch this fund. The timing feels right both for our team and the market opportunity. When we get a contrarian position right, we believe it will lead to greater price appreciation due to the dual effect of earnings growth and Price/Earnings expansio
I tend to be literal minded. For me, a micro-cap global fund is already a contrarian play, so I find it hard to understand why GP needs another fund to gather odd-ball companies. I never thought "stalwarts" made any sense either, but again, that may be me. In my portfolio, WAGOX replaced GPGOX, and I added to BCSVX, because Brown Capital knows small-mid caps. FWIIW, Driehaus Small Cap Growth has received more of my recent dough than the venerable BCSIX. I admire clarity of thought and expression; I have always reacted with skepticism at some of GP's reports and narratives because of language that seemed so sincere and transparent that it produced the opposite reaction. If you try to make me a believer, I'm likely to climb even higher on my agnostic's ladder lest your entreaties soil my shoes. Long live Voltaire.
Check out the links in which two funds were still on the drawing board:
http://www.mutualfundobserver.com/2015/05/may-1-2015/
https://mutualfundobserver.com/discuss/discussion/15385/david-any-word-on-the-launch-date-of-grandeur-peaks-fallen-angels-fund
https://www.mutualfundobserver.com/discuss/discussion/10709/grandeur-peak
https://www.mutualfundobserver.com/discuss/discussion/7116/grandeur-peak-2q-commentary
https://www.news9.com/story/41043515/grandeur-peak-to-launch-new-global-contrarian-fund-september-17th