I just finished the GP Annual Report and June quarterly letter.
Three highlights …
- All of their strategies, except EM Opportunities (GPEOX/GPEIX), are substantially outperforming their benchmarks, YTD (through 6/30/17). In general, the lead is between 400 – 500 bps. The EM lag reflects the fund’s small cap orientation (it trails the EM Small benchmark by much less than the EM All benchmark, reflecting the generally softer performance of small caps), valuation concerns that led to an outsized cash position early in the year, and a few individual-issue problems. It remains a five star fund and a Great Owl.
- Over the past six years, stock prices in their universe have roughly doubled with earnings have flat-lined (their word). In consequence, “Our focus is increasingly on companies with great moats and defensive characteristics.”
- Rondure is traveling with and exchanging research with the GP teams. They’re happy with the level of integration between the teams. Ms. Geritz is now managing about $65 million, a very quick start.
Grandeur Peak’s AUM is, they say, essentially unchanged with all of their strategies – except the Stalwarts – closed to new investors.