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GPMCX

Thoughts on this fund? (Whoever got in before its closing)

Comments

  • @sea: Fund doesn't interest me even if were open to new investors. Since inception, 10/20/15, the funds performance is in the 72 percentile for one year, and 86 percentile YTD. The Linkster is not impressed with Grandeur Peak Funds. I doing just fine without them.
    Regards,
    Ted
  • Still own it. Fund is hitting a rough patch for now. Plan on keeping it.
  • Thanks. Been adding monthly, but I'm beginning to think the 2% ER may not be worth it--way too high. Grandeur Peak's other funds are also not very impressive lately, looking at GPSOX, GPROX, GPGOX.
  • @TheShadow: With all due respect, please tell me when CPMCX has had a smooth patch, plus an outrageous ER. of 2.00% Ouch !!!
    Regards,
    Ted:)
    1-Wk. 65 Percentile
    1-Mo. 97 " "
    3-Mo. 90 " "
    YTD. 86 " "
    1-Yr. 72 " "
  • In my experience, micro-cap funds are tricky. I owned Royce's for a while and was underwhelmed. But, I might have a knack for buying at the wrong time...:-)
  • @shostakovich you didn't buy at the wrong time. Royce just has a knack for launching bushels of underperforming funds!
  • Still sticking with GPEOX, but I'm a little concerned. I think they may have been a victim of their own success. Should've stayed away from the microcap and stalwarts launches for longer, as originally planned.
  • @carew388.... too true. They really chase the AUM, especially since the LM acquisition. Wife and I still both hold RYSEX, but I've already put together an exit plan.
  • @sea: GPMCX is 50% invested in Asia, although not a great deal in emerging Asia. It's a bad year for the region's stock markets. The fund is under $40M, turned over about 46% according to latest report, so I hope the managers are spotting some inefficiencies and taking advantage. I'm holding. I could add to my position because I haven't taken advantage of the annual "window" this year.
  • @Ted,

    High ER's are typical of small funds with small amounts of AUM. Another issue is the fund is closed to new investors, so there is a small asset base in which they can receive funds from. I am continuing to put in a small amount per month for limited time. Bridgeway, Oberweis, and Wasatch have fairly small asset bases with fairly high expenses.

    Can you show me an actively managed small cap fund with a low amount AUM, which is not necessarily closed to new investors, in which the expenses are not high? Vanguard does not qualify as many of their small cap funds have small to mid cap size holdings.
  • I have owned WEMMX and GABSX in the past and done well with them, though I think they are no longer quite the leaders they once were
  • edited August 2018
    @LewisBraham,

    You are right about that one as I do own it. However, the AUM is significantly larger than GPMCX; even METAX has low AUM and higher expenses.
  • I posted some others too after you posted. But it is hard to find tiny funds with low expense ratios investing in small caps.
  • @LewisBraham,

    That was the point I was trying to convey. Tiny funds (i.e. less than $100 million) with low expenses are nearly non-existent.
  • GPMCX has had a bad year, but still outperformed since inception--which was the only chance to buy it. I own it and would add to it if I could.
  • @BenWP Have you used this window before ? First I've heard of it.

    Derf
  • @Derf: I can't recall how I found out, but after opening my account in 2015, I made purchases in 2016 and 2017 for $6K each year. I'm pretty sure GP announced it and $6K is the yearly limit. Someone may remember what the maximum opening purchase limit was; $25K sticks in my mind. I put in less than that.
  • edited August 2018
    I believe the amount is tied to what is equal to an deductible/non-deductible retirement account. I believe it was $6K initially. Maximum investment amount initially advertised was $100K, but due to overwhelming interest, maximum investment was lowered to $50K to appease investors.


    From the 2015 Allocation email:

    "Thank you for your interest in our new Global Micro Cap Fund (GPMCX). As anticipated, requests from current Grandeur Peak Fund shareholders far exceeded our $25 million target. During the Indication of Interest window we received requests totaling over $85 million. We have allocated the available $25M across all parties who expressed interest. Our allocation objective was to be fair and consistent across shareholders and to allow all interested shareholders an opportunity to purchase the Fund. We capped larger requests at a consistent level in order to keep our total allocation to around $25M. Keeping the Fund at this very small size will allow us to be fairly unconstrained as we look for interesting micro-cap investments across the globe.

    ,,,We will hold your allocation through October 30, 2015, so please ensure all trades are placed by that date. If you wish to set up an automatic investment plan, you may do so, but the maximum purchase size is $500/month (this amount can be in addition to your stated allocation). Unlike our other hard closures, retirement accounts will not have unlimited access to make future purchases in this Fund. Retirement accounts will be capped at $6000/year for future purchases."


    From the most recent prospectus:

    https://www.sec.gov/Archives/edgar/data/915802/000139834417011117/fp0027624_485bpos.htm


    PURCHASE AND SALE OF FUND SHARES

    As of the close of business on December 31, 2016, the Fund is closed to both new and existing investors seeking to purchase shares of the Fund either directly or through third party intermediaries, subject to certain exceptions for participants in certain qualified retirement plans with an existing position in the Fund and direct shareholders with existing accounts who may purchase up to the amount of the current IRA catch up limit per year in additional shares, regardless of account type. The Fund’s investment adviser retains the ability, subject to the oversight of the Board, to make exceptions to any action taken to close the Fund or limit inflows into the Fund.



  • Hmm. I thought I had to establish that AIP at the start. I need to look into this. If there's a further I dip, I might add the 6K. Thanks @TheShadow
  • I purchased into it at its inception, and have been pleased. It's my only allocation into Microcap. I put my $6K contribution at the beginning of every year, and while it's been down recently, I've had an unrealized gain of 14%. I'd invest more if they allowed.
  • If I sell all, can I still buy it later, provided I haven't exceeded the maximal amount allocated to me?
  • sea said:

    If I sell all, can I still buy it later, provided I haven't exceeded the maximal amount allocated to me?

    No, once you're out any later desire to purchase is as a new investor. Since the fund was significantly oversubscribed and is hard closed, I'd assume any opening would be to first soften the close and if that didn't bring in the assets they were willing to deal with only then would I think they'll open it to "new" investors again.

  • I see, thanks @LLJB.
  • edited August 2018
    Here is another news commentary on MECAX (not to hijack the thread but MECAX was mentioned above):

    https://www.marketwatch.com/story/small--and-micro-cap-stocks-get-another-look-as-the-sp-500-index-stalls-2018-08-17
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