Going Micro Cap10.17.2011
One mutual fund family goes beyond small cap, into undiscovered micro cap companies.
Salt-Lake City based mutual fund advisor, Grandeur Peak Global Advisors announced the launch of two new funds on October 17: the Grandeur Peak Global Opportunities Fund, and the Grandeur Peak International Opportunities Fund.
The firm focuses on “micro cap” investing, which are “undiscovered” small companies that are poised for growth, with strong financials, and a competitive advantage, according to Eric Huefner, president and chief operating officer of Grandeur Peak.
“We don’t make a hard differentiation between small and micro cap,” he said, noting that micro cap companies are in the 100 to 300 million range,” said Huefner. “Our sweet spot has been small companies because they grow faster, and we take advantage of market inefficiencies before discovery.”
Such a niche market has always been Grandeur Peak’s “sweet spot.” The firm was launched by Robert Gardiner and Blake Walker, both of whom are former portfolio managers at bottom-up, small-cap mutual fund company Wasatch Advisors.
“We’re been a boutique firm focused on this space for the last 25 years, and have no intention to go beyond our expertise, which is small and micro cap investing. Not too many people are doing micro cap on a global level, and we find it the most appealing… not just because others aren’t doing it, but because we find it the most interesting,” Huefner said.
The Grandeur Peak Global Opportunities Fund will be a portfolio of 100 to 150 global equities, with a strong bias towards small and micro cap companies. Investments will include companies based in the U.S., developed foreign countries, and emerging/frontier markets. Additionally, the portfolio has flexibility to adjust its investment mix by market cap, country, and sector in order to invest where the portfolio managers believe the best global opportunities currently exist.
The Grandeur Peak International Opportunities Fund will be a portfolio comprised of 100-150 small and micro cap growth international companies, only.