The fund will have a global mandate with a focus on finding quality smaller cap companies that Grandeur Peak believes are out-of-favor or otherwise undervalued.
SALT LAKE CITY, UT, USA, September 13, 2019 /EINPresswire.com/ — Grandeur Peak Global Advisors® announced that on Tuesday, September 17th, it will launch its first new fund since 2015. The new fund, the Grandeur Peak Global Contrarian Fund (GPGCX), will have a global mandate with a particular focus on finding quality smaller cap companies that are out-of-favor or otherwise undervalued relative to what Grandeur Peak believes to be their long-term potential.
The Global Contrarian Fund will leverage the global research of the Grandeur Peak team, but take larger and broader positions in out-of-favor and undervalued companies, sectors, and geographies. Lead portfolio manager, Mark Madsen, said “the Fund’s holdings will typically fall into one of these five categories:
• Core Contrarian: High quality companies in an out-of-favor industry or geography.
• Fallen Angels: Quality growth companies that we believe have hit a temporary “bump in the road.”
• Undiscovered Growth: High quality companies that are growing, with nice headroom, but are not yet broadly discovered.
• Under the Radar: Quality companies with underappreciated growth opportunities.
• High Yield or Sum of Parts: Strong income producer with lower earnings growth; undervalued when aggregating total assets.”
Randy Pearce, Chief Investment Officer, provided additional background: “The Global Contrarian Fund has been on our product plan since the inception of the firm. Finding high quality undiscovered and undervalued companies is part of our daily work. Some of these opportunities don’t fit neatly into our growth-focused funds, so we tread lightly or wait for growth to return before buying. The Global Contrarian Fund will allow us to concentrate a portfolio in these kinds of very interesting long-term investments. The general market shift towards passive investing (ETFs and Index Funds) makes this product additionally interesting because there are plenty of good small/micro-cap companies that aren’t captured by passive products and are trading at even more appealing valuations. We’ve waited eight years to launch this fund. The timing feels right both for our team and the market opportunity. When we get a contrarian position right, we believe it will lead to greater price appreciation due to the dual effect of earnings growth and Price/Earnings expansion.”
The portfolio managers for the Global Contrarian Fund will be Mark Madsen (CFA, MAcc) and Keefer Babbitt (CFA), with Robert Gardiner (CFA) as the Guardian Portfolio Manager; but as with all Grandeur Peak funds, the entire research team will be involved in analyzing and finding appropriate positions for the Fund. “Managing a ‘value’ fund within a growth shop has unique advantages” added Mr. Gardiner. “I managed two value funds at my prior firm and found that having a growth mindset helps you find and recognize what may be the most rewarding value opportunities.”
Similar to the other smaller cap Grandeur Peak funds, the firm expects to limit the assets in the Global Contrarian Fund to allow the Fund to continue to purchase small and micro-cap stocks without being hindered by assets under management.
About Grandeur Peak Global Advisors
Grandeur Peak Global Advisors is comprised of a highly seasoned and collaborative research team taking a bottom-up approach to investing using disciplined global screening, rigorous company due diligence, and close attention to valuation to find what we believe to be the best investment opportunities around the world. Our bias is towards micro to mid-cap companies because we believe we can find faster growth among these firms, and often at better valuations due to the lack of analyst coverage. Grandeur Peak Global Advisors, LLC is an employee-owned investment adviser headquartered in Salt Lake City, Utah and registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940.
The objective of all the Grandeur Peak Funds is long-term growth of capital. The Global Contrarian Fund is new and has limited operating history.
Mutual fund investing involves risks and loss of principal is possible. Diversification does not eliminate the risk of experiencing investment loss. Investing in small-cap funds will be more volatile and loss of principal could be greater than investing in large cap or more diversified funds.
Investing in foreign securities entails special risks, such as currency fluctuations and political uncertainties, which are described in more detail in the prospectus. Investments in emerging markets are subject to the same risks as other foreign securities and may be subject to greater risks than investments in foreign countries with more established economies and securities markets.
An investor should consider investment objectives, risks, charges, and expenses carefully before investing. To obtain a prospectus, containing this and other information, visit www.grandeurpeakglobal.com or call 1-855-377-PEAK (7325). Please read it carefully before investing.
Grandeur Peak Funds will deduct a 2.00% redemption proceeds fee on Fund shares held 60 days or less. For more complete information including charges, risks and expenses, read the prospectus carefully.
Price/Earnings expansion is when investors are willing to pay a higher multiple for the company’s earnings, typically because investors believe there is increased likelihood of earnings growth going forward.
MAcc is a Masters of Accounting degree.
CFA is a trademark owned by the CFA Institute.
Grandeur Peak Funds are distributed by ALPS Distributors, Inc (“ADI”). Grandeur Peak Global Advisors is not affiliated with ADI. Eric Huefner is a registered representative of ADI.
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Source: EIN Presswire