Bad feng shui
My first office was a room (shared office) in a low level 1970’s ex IRD building in Takapuna. Spartan would be a kind way of describing the office. I distinctly recall there was only one tiny window up high in the corner with bars on it. Not long after I’d taken up residence, I remember a friend coming in and saying, “this office has bad feng shui Mike – it’s not good”. Bad feng shui all right - a week later, Lehman’s collapsed! But it was cheap, the neighbours were cheerful, and the landlord was amenable to my predicament of starting a new business in the GFC– renting me the space for $10,000 p.a. (he later became a client too).
The hard grind has paid off
I know some readers and investors might call those the Halcyon days of Pie (2007-2009) something to look back on fondly. To me, it was anything but. It was a bloody hard grind where every day I was worried about the survival of the business and coping with the worst global recession since 1931. There were some very close (and dark) moments. But what doesn’t kill you makes you stronger, and today Pie manages $700 million with a team of around 25 passionate people.
Standout moments
They say it’s funny what you remember, but here are some quick highlights that spring to mind.
- In late 2009, I recall going to clear the mail and being so excited to find a cheque for $100,000 from a new client. That was a huge success back then. However, recently, someone invested $20 million with Pie, which was also a highlight, but at the time, that $100,000 was just as big a thrill as the $20 million today.
- Performance wise 2009, 2012 and 2013 will go down as great years to be in Australasian small caps. We had some fantastic wins over that period. To clients who ask why we aren’t repeating those years, well for a start, we aren’t coming out of the GFC or Euro crisis when investor sentiment was in panic mode and valuations were cheap. More recently, in the last 12 months, I’ve been really happy with the performance of Growth UK & Europe and Global. The funds have returned 20.0% and 18.4% respectively, which is impressive considering the cash levels are approaching 50%. Pie has been able to take its Australasian skill set and replicate that in other markets around the world.
- In 10 years, the Pie ‘family’ has multiplied with seven children being born to staff over that time (including two of my own), and a further two in the oven at present! We have such great people at Pie and that makes a huge difference to coming to work.
- Finally, growing the business from scratch to where it sits today, having happy staff and happy clients is an extremely satisfying achievement.
I’d like to thank everyone who has supported Pie Funds and me over the past decade, whether they be clients or intermediaries. Importantly, thanks to the directors and employees who have made this journey what it is today. So, from me to everyone who is reading this – a big THANKS.
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New team member
PAUL GREGORY
Head of Investments
Paul’s current role is on the Executive team at the FMA as Director of External Communications and Investor Capability. Prior to this he was at NZ Superannuation for a number of years. He brings considerable experience to Pie and a different perspective on many things given his background. Paul’s initial focus will be on investment oversight plus ESG investing. He will also work on investor education and communication as he has been a regular commentator for the FMA.
As always, thank you for your support. If you have any questions please don’t hesitate to call me on (09) 486 1701, or email me, mike@piefunds.co.nz.