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Longleaf Partners Global Fund is closed to new investors.

edited January 2013 in Fund Discussions
Didn't even know they had this fund?

http://www.sec.gov/Archives/edgar/data/806636/000119312513026130/d475367d497.htm

497 1 d475367d497.htm SUPPLEMENT TO THE LONGLEAF PARTNERS FUNDS
LONGLEAF PARTNERS FUNDS TRUST

SUPPLEMENT DATED JANUARY 28, 2013 TO PROSPECTUS DATED MAY 1, 2012,

AS SUPPLEMENTED DECEMBER 27, 2012

January 28, 2013

Effective immediately, references to Longleaf Partners Global Fund in the Table of Contents and on pages 16 and 23 of the Prospectus are revised to state that the Fund is closed to new investors.

Comments

  • Fund facts from Southeastern Asset Management web site:

    Fund Facts at 1/3/13


    Inception Date

    December 27, 2012


    Net Assets

    $3.6 million


    Expense Ratio

    1.65%


    1yr Avg. Turnover

    n/a


    Total Holdings

    n/a


    Wtd. Avg. Market Cap

    n/a


    Minimum

    $10,000


    Ticker

    LLGLX


    CUSIP

    543069504
  • Howdy Shadow,
    Thank you again for your time and efforts in this area.
    Take care of you and yours,
    Catch
  • I don't understand why this fund is closed. Can someone enlighten me?
  • edited January 2013
    That is why I posted this. Why would a fund close to new investors with approximately $3.6M AUM after being open for approximately a month?
  • Skeptic that I am, I'm wondering if this is the equivalent of some films opening with limited distribution to qualify for the Oscars. In the case of funds, to be able to say a year (or three years) later that this is a real fund, not an incubator, and here's its track record.

    (LLP funds tend to have high expenses - the 1.65% quoted is after a waver of 0.50% due to an expense cap. Symbol is LLGLX - curious that M* doesn't report this.)
  • Longleaf Partners Global Fund

    Fund temporarily closed to new investors. (emphasis added)
  • Reply to @msf: Interesting theory. But I still wonder why not just open it to the public? Also it kind of is incubated if this is the way they are going to do it...

    Is anybody interested in this fund? Is anyone still interested in Longleaf anymore?
  • Reply to @ibartman:

    Last night the web site omitted the word "temporarily".
  • To: TheShadow

    Hmm ... so yesterday it was permanent and now it is temporary? ;^)
  • edited January 2013
    I'm working on it. So far, the phone reps say that they've been told nothing. They've passed the query along to SAM. More soon, David
  • edited January 2013
    Revised info. on fund from 1/3/13 from SAM:


    Fund Facts at 1/3/13


    Inception Date

    December 27, 2012


    Net Assets

    $28 million



    Expense Ratio

    1.65%



    1yr Avg. Turnover

    n/a



    Total Holdings

    n/a



    Wtd. Avg. Market Cap

    n/a



    Minimum

    $10,000



    Ticker

    LLGLX



    CUSIP

    543069504
  • Here's their answer. At base, they have nowhere to invest the money they've already received and so don't want to dilute performance any further by sitting on a huge cash pile. This text is from a note to their shareholders.

    David


    We are temporarily closing Longleaf Partners Global Fund to new investors. Although the Fund was only launched on December 31, 2012, our Governing Principles guide our decision to close until we can invest the large cash position currently in the Fund. Since October when we began planning to open the Global Fund, stock prices have risen rapidly, leaving few good businesses that meet our 60% of appraisal discount. Limited qualifying investments, combined with relatively quick inflows from shareholders, have left us with more cash than we can invest. Remaining open would dilute existing investors by further raising our cash level.

    Our Governing Principle, “We will consider closing to new investors if closing would benefit existing clients,” has caused us to close the three other Longleaf Funds at various times over the past 20 years. When investment opportunities enable us to put the Fund’s cash to work, and additional inflows will benefit our partners, we will re-open the Global Fund to new investors.
  • edited January 2013
    Thanks David. Hard to fathom for me. If they were that close to the their value criteria, then it probably should never have opened to begin with.

    But I've been a wary of SAM and LLP ever since LLSCX lost 60% of its value from mid 2007 to early 2009. It has since made it all back and more, but at the time, Morningstar characterized it having a low bear market rank and even now, it gives it a below average risk - it currently rates LLSCX as a Gold Star fund...top in all categories: process, performance, people, parent, and price. So, it's easy to get lulled in...but there is nothing tame about this fund.

    Whatever value cushion they may have in-place now, it was not evident in 2007 when SAM and LLP were still growing their AUM.
  • Same reasoning reported in M* Fund Times, first story in the post here:

    http://news.morningstar.com/articlenet/article.aspx?id=583113

    I don't follow these guys, but maybe they learned something in 07-09?
  • Let's hope, but the whole thing just seems incredulous to me. Who shuts a global fund (benchmarked to MSCI World Index) at $28M AUM? Sounds like this one left the station prematurely.
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