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They are more momentum driven than most shops and use behavioral analysis as well which has worked quite well over the years.... The frontier strategy focuses on growth inflection points. Essentially, when a company has a positive trend change in growth potential or an expected growth trajectory emerges, they purchase. They then let the market price it up (first other investors underestimate the growth potential and the price rises, then overconfidence hits the market which accelerates the momentum). Once this occurs, Driehaus exits the position. Soon after (in theory) the stock price falls.
On Ms. Geritz: I've reached out to her, but haven't heard back. Nonetheless, I'm pretty comfortable inferring what she's up to. Her LinkedIn profile adds "portfolio manager" for two charitable organizations, both beginning in 2016. 2016 marks her 10th anniversary at Wasatch and she was praised for "working tirelessly" in her years there. I could imagine someone in her position being quite well-off but feeling a bit drained. Changed directions to use her skills to benefit poor people around the world might well have been mightily appealing.
On Driehaus: DRFRX now shows $250,000 minimums at TD as elsewhere. I'm told that the lower minimum might have been a data entry error. That said, TD maintains an opening for prospective investors. TD continues to list the AIP initial minimum for the fund at $100. I have no opinion, positive or negative, about the fund. I really haven't read enough to earn one. But if I were predisposed to want in, I might try to very, very quietly open up an account and see if it sticks. Occasionally investors get bounced when such errors are discovered, occasionally advisors simply shrug, close the gate and leave those who are in, in.
I bought some DRFRX last week at TD in my IRA account when the minimum was still $2500, after reading about it here. Now it shows $100K minimum for IRA, and $10K min to buy additional shares.
It seems the managers attribute most of the underperformance to the overweight in consumer staples vs. financials. An interesting note at the end is that while they expect to continue to be overweight consumer staples, they are have also started adding more financials to the fund.
Comments
On Ms. Geritz: I've reached out to her, but haven't heard back. Nonetheless, I'm pretty comfortable inferring what she's up to. Her LinkedIn profile adds "portfolio manager" for two charitable organizations, both beginning in 2016. 2016 marks her 10th anniversary at Wasatch and she was praised for "working tirelessly" in her years there. I could imagine someone in her position being quite well-off but feeling a bit drained. Changed directions to use her skills to benefit poor people around the world might well have been mightily appealing.
On Driehaus: DRFRX now shows $250,000 minimums at TD as elsewhere. I'm told that the lower minimum might have been a data entry error. That said, TD maintains an opening for prospective investors. TD continues to list the AIP initial minimum for the fund at $100. I have no opinion, positive or negative, about the fund. I really haven't read enough to earn one. But if I were predisposed to want in, I might try to very, very quietly open up an account and see if it sticks. Occasionally investors get bounced when such errors are discovered, occasionally advisors simply shrug, close the gate and leave those who are in, in.
For what interest any of that holds,
David
It seems the managers attribute most of the underperformance to the overweight in consumer staples vs. financials. An interesting note at the end is that while they expect to continue to be overweight consumer staples, they are have also started adding more financials to the fund.