Five Principles for Growth

ONE

 

We love to see skin in the game

When you invest with Pie Funds, you invest alongside us.
We invest like it’s our own money because it is. Over $100m of the money we manage comes from our staff, directors, and shareholders (as at 31.01.24). We also look for this commitment in companies we invest in. We love founder-led companies where managers are heavily invested, including financially. They often have extra passion for the company that can give it an edge in the market.

TWO

 

Fundamentals

We look for long-term viability and growth potential.
When we’re considering companies to invest in, we look at the fundamentals. We want to make sure a company's business model is future-proofed and well-suited for the changing market and technological landscape, so it can continue to thrive over time. Investing responsibly is important to us, and we have a policy (available here) which relates to the consideration of environmental, social and governance (“ESG”) factors in our investment process. This is because we believe that ESG risks and opportunities can affect the risk and return of investments. We’re proactive and we manage our funds in accordance with a robust risk framework to act in the best interests of our investors.

THREE

 

We invest in people

When driving returns, it matters who drives.
Sure, lots of people can drive, but only a few can race. Even among professionals with millions of dollars behind them, some won’t get to the front, and some won’t even finish the race. It’s the same with company leadership. Skill, experience, passion and ability really do come together to make something more than the sum of the parts. So, when we invest in companies, we invest in the senior team running them. And if the people change, we review our investments and exit if we need to. It’s that important.

FOUR

 

We like to see tailwinds

The best sailboat is nothing without wind.
We don’t hold Sky, Blockbuster or Blackberry. They were all once share market darlings, but none had tailwinds. It might seem obvious, but how many of the big companies that index funds track today will be the biggest tomorrow? In fact, only a handful of top companies are the same decade to decade. For long-term wealth creation you need what’s next, so we work to find emerging leaders and get in early for the journey up. We’re interested in where the world is going, and the wind in your sails will take you a lot further.

FIVE

 

Set something aside for a rainy day

Make hay while the sun doesn't shine.
Much like you, we have something tucked away for a rainy day. We hold cash in our funds and a seasoned approach to increasing it – as far as 100% - when markets dip or collapse, to preserve investor capital. We’re also well-versed in deploying cash quickly into well-tracked opportunities once markets begin to recover from shocks or recessions. That discipline was the making of our company. We’ve been investing for over 16 years, before the Global Financial Crisis. In 2008, our first fund, the Growth Fund, dropped about half as far as its market index because of a high cash buffer. Then it rebounded 105% the following year as we spent our cash resource on good, mispriced companies. We’re ready to act when we see a threat or opportunity. We believe long-term wealth comes from long-term thinking.


This year kicked off strong and we feel cautiously optimistic. We believe there are still plenty of strong investment opportunities to be found, and we are working hard to find them.

Our investment team is always thinking about how the funds can adapt to the current environment and how we can generate long-term outperformance. Our core investment objective, which has not changed since the company launched, is to find high-quality growth companies with strong balance sheets and great management teams.

Many clients have asked us to share our principles more widely. If you’d like to find out more about these principles, or our wider investment strategy, we’d love to meet with you for a chat and coffee.

James and Simon in a meeting room. Camera lens looking through meeting room glass, with reflections, zoomed in.

Interested in finding out more?
Please do get in touch to make a time to visit our offices in Takapuna or Havelock North.

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