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My feeling pretty much echoes David's on this one and my own from before. If you already own Global Reach, you probably don't need this fund as its allocations to micro, small, mid and large cap stocks are pretty similar. It's possible the fund's individual country weightings may eventually differ dramatically from the other funds, but country allocation is an unproven skill set at the manager and by the time they do prove or fail to prove it, this fund will probably already be closed. Moreover, that skill set will be incorporated into other funds as Global Reach is the mother ship for all of them. The most interesting new fund Grandeur Peak has launched in recent years isn't this one to me. It's Global Contrarian.
Hard to compare funds as limited assets in newest fund. I last posted it was headed for -10 %. To bad incoming money wasn't pooled for a month, so far, as that would have HELPED the -10% ! Who said timing isn't everything ?!! Enjoy the ride, Derf
Thanks for sharing the letter. I was going to pull the plug on my GP investments but I will reluctantly give these guys 2022 to remedy themselves from the mistakes they admitted. I continue to be concerned by the weak bench in management.
Thanks for sharing the letter. I was going to pull the plug on my GP investments but I will reluctantly give these guys 2022 to remedy themselves from the mistakes they admitted. I continue to be concerned by the weak bench in management.
By mid November a number Federal Reserve members have given speeches suggesting an acceleration of end of quantitative easing and that inflation is a concern. Powell reiterated this around Nov 20, in his re-nomination acceptance speech. Since then, a number of hints by the Administration, Fed members, and Powell have been dropped about rate increases and QT via their heightened concern about inflation. Why is the changing interest rate environment a surprise to anybody? I do not have any explanation other than to I think growth equity fund managers only accept information that would help move the equity prices higher and ignore negative indications unless they are clearly spelled out for them. Any investor worth their salt knows you can not do both: haste and compromise on quality - Gods can temporarily excuse the investor for one of those two (but not both), with the understanding that soon after, as a priority, the investor is going to reflect and take necessarily remedial action promptly and not wait for the market's verdict.
"Our team . . . admittedly made some mistakes. We moved too quickly in some cases, had some quality issues, and positioned ourselves in high growth names while the market rewarded more steady-eddy, safe exposure. The changing interest rate environment has punished growth and rewarded value. . . . As the portfolio currently stands, we feel good about our largest and average sized positions. We’re a bit nervous about the tail of the portfolio and are working through the chopping block list."
These guys violated some basic principles of investing, including not knowing when to increase / decrease risk. How could anybody increase risk (high growth names) in Q4 while the market has already been clobbering high growth names - that is the time to increase quality. I decreased risk in my portfolio in Q4 while staying fully invested but did not decrease GP funds thinking that these guys are quality focused. As the cycle matures, one is expected to move to higher quality and not have a tail in the portfolio. I think too many young guns are running the show here. I am happy to overlook all of those because they admit to their mistakes but learning from mistakes is another thing.
I really do not like them having so many funds - 6 Global funds? Too much distraction - easy to have f_ups. It is easy to do well when your style is trending up. A good investor gets his house in order before skit hits the fan - that is part of knowing when to increase risk and when to decrease risk. Lack of discipline is worrisome.
I am more irritated at myself for equating sincerity with discipline-competence.
Of the (7) GP funds with records of 3 years as of semi annual report date Oct 31 2021, five have returns that are fairly close. The other 2, GPEIX & GPIIX trail. Both of these two were their first launches. The 5 year returns also echo the same, both trail.
But as anyone knows this could turn around !? Enjoying the ride, Derf
@BaluBalu, aren't small cap global, especially small cap "growth" funds that may even hold some amount of EM, inherently volatile? There is no fund that navigates every economic condition, but over time the GP group has navigated better than most. There is no management team or fund-house that can "time" the market nor should they try. I personally wouldn't want my global growth fund to suddenly change it's style to something else. These aren't alternative funds that have that flexibility.
Just a different opinion.
The GP funds appear to be right in the mix of all other funds of their style for volatility and YTD return. Even the esteemed Wasatch funds, ie. WAGOX, has had a rough start to 2022. Worst than the GP fund I own, GPGOX.
I took a quick look at random Global Small-Mid Growth funds. here are some #s YTD:
@MikeM, I can not reconcile your first paragraph and against the paragraph from the Q4 letter I had quoted. I am not looking for any reply / response. We have different expectations. I see what I see and shared. I am not looking to convince anybody.
In case my prior posts on GP and other managers did not make it obvious, I hire active fund managers for their business. I am not concerned about short term results. Since you mentioned about YTD results, you can look up GUSYX - M* says 25 percentile performance. I mention GUSYX because it is easy to see in it the paragraph I quoted. GISYX happens to be 8 percentile.
Years ago, Fund X made a mistake and when some of us asked for more information, they were dismissive about it. I was a novice investor at that time but I did not like their business practice and withdrew my investment. Others while were irritated by the fund’s FU mentality, stuck around. I never looked back at Fund X Co. As I said, I am not pulling my investment from GP but i am not increasing my investment. If I am not able to increase my investment to 5-10% of my PV, I liquidate. I go up to 40% of my PV. Making a temporary exception for GP.
For a number of the GP funds an entire year's worth of great returns have just gone "poof" in less than four weeks. That does, in my view, signal a worrisome aspect to the firm's risk management practices.
For a number of the GP funds an entire year's worth of great returns have just gone "poof" in less than four weeks. That does, in my view, signal a worrisome aspect to the firm's risk management practices.
And later in the year it is possible that in just four weeks the loss will go "foop" (that's "poof" backwards) and things will be back to the start of the year or there might even be a gain. We just don't know.
For a number of the GP funds an entire year's worth of great returns have just gone "poof" in less than four weeks. That does, in my view, signal a worrisome aspect to the firm's risk management practices.
And later in the year it is possible that in just four weeks the loss will go "foop" (that's "poof" backwards) and things will be back to the start of the year or there might even be a gain. We just don't know.
Yes, this is the nature of their funds. They typically drop a lot and then come back even more than they dropped. I consider their funds l-t holdings.
I am finding parts of this thread hard to understand due to terminology I don't understand. First there was "weak bench". Now there is "l-t holdings". A careful web search has turned up nothing. Can someone explain what these terms mean please? There is no sarcasm in my question. I just don't know what is meant.
And of course "weak bench" is a sports term, meaning that there are not many good back-up players. So if something happens to the most talented players, the team may be in for some trouble.
Comments
https://grandeurpeakglobal.com/documents/grandeur-peak-global-explorer-fund-fs-20211231.pdf
To Global Reach:
https://grandeurpeakglobal.com/documents/grandeur-peak-global-reach-fund-fs-20211231.pdf
What do you think about similarities/differences between the two funds?
-10 %. To bad incoming money wasn't pooled for a month, so far, as that would have HELPED the -10% ! Who said timing isn't everything ?!!
Enjoy the ride, Derf
"Our team . . . admittedly made some mistakes. We moved too quickly in some cases, had some quality issues, and positioned ourselves in high growth names while the market rewarded more steady-eddy, safe exposure. The changing interest rate environment has punished growth and rewarded value. . . .
As the portfolio currently stands, we feel good about our largest and average sized positions. We’re a bit nervous about the tail of the portfolio and are working through the chopping block list."
These guys violated some basic principles of investing, including not knowing when to increase / decrease risk. How could anybody increase risk (high growth names) in Q4 while the market has already been clobbering high growth names - that is the time to increase quality. I decreased risk in my portfolio in Q4 while staying fully invested but did not decrease GP funds thinking that these guys are quality focused. As the cycle matures, one is expected to move to higher quality and not have a tail in the portfolio. I think too many young guns are running the show here. I am happy to overlook all of those because they admit to their mistakes but learning from mistakes is another thing.
I really do not like them having so many funds - 6 Global funds? Too much distraction - easy to have f_ups. It is easy to do well when your style is trending up. A good investor gets his house in order before skit hits the fan - that is part of knowing when to increase risk and when to decrease risk. Lack of discipline is worrisome.
I am more irritated at myself for equating sincerity with discipline-competence.
"Recently added GPGCX to one of my retirement portfolios. It is showing good strength relative to the other GP funds. Planning to hold long-term".
I just combed through semi-annual GP funds.
GPGCX didn't do so well during Covid drop, so it will be worth keeping an I on
Of the (7) GP funds with records of 3 years as of semi annual report date Oct 31 2021,
five have returns that are fairly close. The other 2, GPEIX & GPIIX trail. Both of these two were their first launches.
The 5 year returns also echo the same, both trail.
But as anyone knows this could turn around !?
Enjoying the ride, Derf
Just a different opinion.
The GP funds appear to be right in the mix of all other funds of their style for volatility and YTD return. Even the esteemed Wasatch funds, ie. WAGOX, has had a rough start to 2022. Worst than the GP fund I own, GPGOX.
I took a quick look at random Global Small-Mid Growth funds. here are some #s YTD:
GPGOX -13.3%
WAGOX -17.2
KGDAX-12.2
OBEGX -18.1
GLNAX -11.8
Personally, I wouldn't exchange my 5* GPGOX for any of these.
In case my prior posts on GP and other managers did not make it obvious, I hire active fund managers for their business. I am not concerned about short term results. Since you mentioned about YTD results, you can look up GUSYX - M* says 25 percentile performance. I mention GUSYX because it is easy to see in it the paragraph I quoted. GISYX happens to be 8 percentile.
Years ago, Fund X made a mistake and when some of us asked for more information, they were dismissive about it. I was a novice investor at that time but I did not like their business practice and withdrew my investment. Others while were irritated by the fund’s FU mentality, stuck around. I never looked back at Fund X Co. As I said, I am not pulling my investment from GP but i am not increasing my investment. If I am not able to increase my investment to 5-10% of my PV, I liquidate. I go up to 40% of my PV. Making a temporary exception for GP.
Could you fill in the blank please.
Derf
Buying for time, Derf
I hope you are right! I bought GISYX a few months back and have taken quite a beating on it.