Managed funds

[Shareguy]

I see Pie Funds has lost 2 keep people who have set up a competing fund management business.  What's your thoughts on this ? I have money with Pie funds and the performance over the last year has not been the best.

[Basil]

Need more info mate.  Who have they lost, what are their credentials and what fund have they set up ?
I think almost all the managed funds have had a tough last 12 months.
Mike started out as a prominent poster on that other dreadful forum.  Not sure if he has extensive investment banking or investment analysis skills but he seems to have done okay over the years.
I thought about throwing him a bone but I decided I prefer to paddle my own canoe.
They certainly take a fairly big piece of the pie for themselves with their fees.

[winner (n)]

Basil ....changes at Pie in this

https://www.goodreturns.co.nz/article/976520607/new-pie-like-fund-being-baked.html?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Friday+12+August+2022

[Stoploss]

Personally I'd put them on credit watch.
I'd also be prepared to put some money with the new company see how they both go .It's good to have a choice .
 If you want further info , you can register here.
 https://discoveryfunds.co.nz/

[Shareguy]

https://www.piefunds.co.nz/Portals/3/Documents/Fact%20Sheets/2022/Monthly-Fact_Sheet-August-2022.pdf?utm_medium=email&utm_campaign=Slice%20of%20Pie%20-%20August%202022&utm_content=Slice%20of%20Pie%20-%20August%202022+CID_b7fcd7ceb2ad8dca9a9d0ff13b464246&utm_source=Email%20marketing%20software&utm_term=Read%20Here

[Dotbond]

Anyone else seen advertising by Chance Voight Investment Partners (CVI Partners).
Targeted return of 20% pa overv 5 yrs in the Aussie sharemarket.

[Basil]

Interesting to note that they want 1.2% management fee excl GST + 20% performance fee excl GST and neither has any formal investment analysis qualifications.  10 years and 12 years respectively capital markets experience.  They did well at PIE for the last 10 years (during a roaring bull market), and have now jumped ship to set up their own shop when times are tougher rather than face the reality that some of their former stock selections have turned to custard, Hmmm.

Minimum investment is $250K which is no barrier for many of us...but some of us have many decades of investment experience across multiple different economic cycles, not just the one decade these guys have in the greatest bull market of our lives.

[Crackity]

Please join us to celebrate the launch of the Discovery Founders' Fund.
 
Enjoy drinks and nibbles whilst hearing about Discovery, the Founders' Fund and positioning Day One.
 
Places are limited, so please register your interest using the link below.
 
https://www.eventbrite.co.nz/e/discovery-founders-fund-launch-event-tickets-411684418177
 
We look forward to seeing you there.
 
 
image001.gif
Mark Devcich
Founder & Portfolio Manager
Discovery Funds Management
+64 27 341 4668  | discoveryfunds.co.nz


Go along for a feed Basil!

[Shareguy]

Interesting to note that they want 1.2% management fee excl GST + 20% performance fee excl GST and neither has any formal investment analysis qualifications.  10 years and 12 years respectively capital markets experience.  They did well at PIE for the last 10 years (during a roaring bull market), and have now jumped ship to set up their own shop when times are tougher rather than face the reality that some of their former stock selections have turned to custard, Hmmm.

Minimum investment is $250K which is no barrier for many of us...but some of us have many decades of investment experience across multiple different economic cycles, not just the one decade these guys have in the greatest bull market of our lives.

(So right Basil. If anyone has any doubt have a look at last years returns on Pies website. )

[Basil]

Go along for a feed Basil!

yeah...NAH.   I'm quite discerning which dog bowl I eat out of these days mate.  Not many funds in this ugly bear market of 2022 are up this year but the Beagle fund I manage is    Maybe I should pay myself a 20% performance fee lol

[Shareguy]

Discovery off to a great start

The Discovery Founders' Fund was up 7% (net) in October versus the benchmark up 3.1% (NZD).
 
We're pleased with the strong start. The performance was achieved despite taking a prudent approach to deploying capital. We ended the month with
+35% cash.

[Basil]

Early days, good they outperformed their benchmark, October was a huge month in the markets with the DOW index for example up 14% in October.
The other thing to watch is that funds often do quite well at the start of their investment journey as they bid strongly into their own opening positions and ostensibly appear to build wealth through building opening ;positions.
I strongly dislike their 20% performance fee which is egregiously self-gratifying in my opinion and well out of line with industry norms in N.Z,.  The other thing is their guys built their careers on the back of Mike's expertise in the PIE funds and then jumped ship when the going got tough.  Seems more than a little self-serving to me.

The acid test as I understand it with new funds is how do they go in the first three years.  If they can prove they can outperform the market materially over 3 years they might be worth their extremely expensive performance fees.  The Jury is going to be "out" on these guys for a long time.

[Shareguy]

https://www.piefunds.co.nz/Market-Insights/Slice-of-Pie-Newsletter/

[Shareguy]

Discovery now up 9.8 percent in two months.  Well done Mark and Chris


https://discoveryfunds.us11.list-manage.com/track/click?u=5c1216a1533df806fdc1c886f&id=2a08f34608&e=67af1006e4

[Shareguy]

Mike at Pie says today

The start of 2023 is expected to bring ongoing volatility in markets, but we think there are still great opportunities for investment, says Founder and Chief Investment Officer Mike Taylor.

What sectors is the Pie Funds global investment team watching in 2023?

Consumer discretionary
We think there will likely be some great opportunities for sizeable returns in 2023, in areas like appliances and electronics, apparel, footwear, luxury items, entertainment and cars. This might include the travel sector too which has had a lot of challenges in 2022. In New Zealand, consumers are spending less and this will be the case for a while, but in the US and Europe this started earlier than here, so is likely to pick up globally before things change in New Zealand. Share prices of companies in this sector are likely to pick up well before demand starts to pick up, so we will want to deploy cash early.
Energy efficiency
The energy efficiency sector includes products that make buildings run more efficiently, with lower energy consumption and fewer emissions. This sector also covers electrification, meaning products like electric vehicles and batteries. The effort and capital cost to shift to an electrified global economy is huge and so we see a lot of investment potential there in 2023 and beyond. Driving growth is strong global demand for more sustainability, government policy changes in Europe, and the war in Eastern Europe bringing higher energy costs.
Medical devices and equipment
We think diagnostic and scientific equipment companies have a strong long-term outlook, despite the current gloomy economy, because patients still need to be diagnosed and new drugs still need to be discovered. The rapidly ageing population is contributing to the demand. New treatment techniques such as cell and gene therapy are also emerging, meaning new machines need to be purchased. These companies often have recurring revenues from consumables as well as selling the machines. In our view, these elements all add up to a strong investment sector for 2023.
Factory automation
Factory automation is using machines to replace humans or more efficient machines to replace less efficient machines, meaning higher quality, better speed and lower cost manufacturing. In a higher wage inflation environment, increased automation becomes even more important to protect company margins.
So within a strong sector, what makes a good company? We look for recurring revenue, consumer demand and positive behaviour changes, strong business models, long-term forecasts, position in the market, and whether a company is a global leader in its field. We select companies we think are robust and that have strong balance sheets to weather any storm. In particular, we want to invest in businesses we think will do well over the long term.