Managed funds

Started by Shareguy, Aug 13, 2022, 07:19 AM

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Basil

#150
Very good energy and lots of very happy people at the Discovery end of year celebration last evening.
Very impressed with Chris and Mark.  They both struck me as extremely intelligent, fit and healthy looking, hardworking blokes in the prime of their life and seem super hungry to continue to generate serious market outperformance.

Only fly in the ointment is there was some talk of them paying some capital back in 2025 if the fund performance keeps going ballistic.  They are keen to keep the fund at a boutique size and its already well over $300m with market outperformance since they closed the fund in late Sept.  Mark mentioned they turned away more than $50m at the point of closing the fund and there's a waitlist for additional investment but it's extremely unlikely to ever be opened again.

Mark wouldn't put a number on the point at which they might consider paying some capital back, but he did mention if it keeps performing the way it is, they will consider doing so in mid 2025.  I inferred from that the upper preferred limit of the fund size allowing for outperformance over and above the $300m invested is about $450-$500m and after that we're unfortunately quite likely to see a portion of our money returned.  Mark mentioned one guy drew out $1m for a property deal and then tried to return it and they said no.   Don't withdraw money unless you absolutely have too, is my thoughts on the matter.

Shareguy

Great update Basil, Thankyou.

Sorry I missed it. Yes I take my hat off to these guys. One of their competitors said to me that he thought they would extend it or open another fund so I'm pleased that they are sticking to their guns. Selling down my NZX portfolio and putting into Discovery early on is one of the best decisions I have made.

Great to be well positioned and watch the experts at work especially as I plan a lot more travel.

I will be looking for another Discovery for any surplus funds. Watch this space....

BlackPeter

Quote from: Shareguy on Dec 04, 2024, 03:03 PMGreat update Basil, Thankyou.

Sorry I missed it. Yes I take my hat off to these guys. One of their competitors said to me that he thought they would extend it or open another fund so I'm pleased that they are sticking to their guns. Selling down my NZX portfolio and putting into Discovery early on is one of the best decisions I have made.

Great to be well positioned and watch the experts at work especially as I plan a lot more travel.

I will be looking for another Discovery for any surplus funds. Watch this space....

Mmh - I guess sometimes one can recognize an investment problem just by scanning small number of posts.

Always good to read the fine print of investment opportunities: "Past performance is no indicator for future performance" ... and - Oops - they don't even provide the paperwork required to sell legally to retail investors. I'd see this as a big red flag.

If they achieve above market  returns, than clearly the only way to do this is by accepting higher risks. Great if it worked for them over the last couple of years, but surely - this does not mean it will stay this way forever.

If you have a lucky streak in the casino - do you assume that it will continue forever? Well, maybe you do. Many people do ... and often they find out too late that they did err.

Clearly not a fund I would invest material parts of our nest egg into ...


Shareguy

#153
Quote from: BlackPeter on Dec 04, 2024, 05:09 PMMmh - I guess sometimes one can recognize an investment problem just by scanning small number of posts.

Always good to read the fine print of investment opportunities: "Past performance is no indicator for future performance" ... and - Oops - they don't even provide the paperwork required to sell legally to retail investors. I'd see this as a big red flag.

If they achieve above market  returns, than clearly the only way to do this is by accepting higher risks. Great if it worked for them over the last couple of years, but surely - this does not mean it will stay this way forever.

If you have a lucky streak in the casino - do you assume that it will continue forever? Well, maybe you do. Many people do ... and often they find out too late that they did err.

Clearly not a fund I would invest material parts of our nest egg into ...



Thanks for your post BP.

This is a fund for wholesale investors only. They don't want retail investors it's that simple. High risk and high reward is what this is. It's very well explained in their documentation. Anyone who invests should understand this. And with that only invest what you can afford to loose. Yes a small number of posts but only a small pool of wholesale investors. Still there is plenty viewing the thread.

Yes the returns to date have been spectacular and yes going forward that may change. All I know is that I'm very, very glad that I made the decision to invest with Mark and Chris. It's been a game changer for me.

I have done well over the years investing directly in stocks and will continue to do so, but I personally think that is more like a casino these days, especially the NZX.




Shareguy

December update out for Discovery. A tough month down 2.5 percent against the index 2.7 percent.  Still up 63 percent for the year and 176 percent since inception. A fantastic result.

https://discoveryfunds.co.nz/assets/Newsletters/Discovery-Dec-24.pdf

Shareguy

Managed fund related

Can highly recommend "Red Notice" by Bill Browder. A true storey of how Bill set up a managed fund Hermitage Capital and was the largest foreign investor in Russia. The corruption in the Russian government is hard to believe. A great read I thought.

Shareguy

Discovery was the third best fund return in NZ. Pie Australasian growth 2 also did well up 27 percent. Anyone invested with Lighthouse?

https://www.rnz.co.nz/news/business/538119/where-were-the-best-investments-of-2024

Stoploss

Not the best month, but they acknowledge that and move on .
https://discoveryfunds.co.nz/market-insights/discoverys-january-2025-update/

 Looking for some good reports this month .