Fund News and Updates

New fund launching soon: Multi-Strategy Fund

Friday 6 October, 2017

New fund launching soon: Multi-Strategy Fund

No money is currently being sought. The Multi-Strategy Fund cannot currently be applied for or acquired. If Pie Funds offers the Product, the offer will be made in accordance with the Financial Markets Conduct Act. No indication of interest will involve an obligation or commitment to acquire the Product. 

Registering your interest: Email multi-strategy@piefunds.co.nz

 


Written by Mike Taylor, Founder, CEO and CIO

Multi-Strategy Fund: It's your move...

Ten years in the making 

As a keen chess player, I know that there is more than one strategy to win a game. In my twenty years as an investor and over ten years managing Pie Funds, I’ve observed booms, busts, bubbles and crashes in just about every asset class imaginable from tech stocks, to bonds to classic cars. Over this time, one thing that stands out to me the most is the sheer number of good investment opportunities, some of which clients at Pie have profited from. But it’s not just equity opportunities, I’ve seen depressed property prices, an over and undervalued New Zealand dollar, bonds yielding negative returns and opportunities to make money as markets fall.

As a keen chess player, I know that there is more than one strategy to win a game. 

While our other funds are focused on long-term capital growth from equities, the Pie Multi-Strategy Fund is different. It will seek to make money from the best investment ideas that I can find across different asset classes from around the globe. Depending on the market cycle or opportunity, this might be in NZ shares, US shares, bonds, property, private equity or themes such as clean energy. Our goal is to take advantage of mispricing in the market-place and to have a fund that aims to make money in all market conditions.

Increasingly, as we get deeper into the bull market, it’s time to consider how we can make money not just when markets go up, but also when they fall. We believe a strategy like this complements an investor’s portfolio. Having experienced many market cycles, I know that there can be opportunities in rising and falling markets. Therefore, this fund will actively seek short positions and use hedging strategies for such occasions.

Having experienced many market cycles, I know that there can be opportunities in rising and falling markets. 

Overall, the key to this strategy is ensuring that the threshold for investment is high and waiting for the most compelling ideas. Sometimes, an asset class might only offer up an opportunity every few years. Our intention is to be patient and as Warren Buffet and Charlie Munger say, “invest heavily when you have the odds, the rest of the time, don’t”.

I look forward to having you as an investor in our new fund, which promises to be an exciting strategy to manage.

Objective 

The Fund’s investment objective is to deliver positive returns regardless of the movement in equity, interest rate or currency markets. The Fund aims to achieve positive long-term returns in a variety of market conditions by investing across a diverse range of assets and global markets, with the added flexibility to go short. 

Investment strategy 

The Fund will use multiple investment strategies giving it the ability to reallocate capital between them in response to market opportunities. With a bias to equities (which may include short selling), the Fund will seek investments to help grow and protect capital.  

To assist in achieving our investment objective, the investment strategies or financial products the Fund may invest in include, but are not limited to;

  • Equities long or short
  • Fixed interest
  • Cash – multi-currency
  • Unlisted investments
  • Property
  • Derivatives such as equity options, futures, ETF’s and CFD’s.

Important Dates  

  • 26 Oct: Application form available on our website
  • 1 Nov: Fund commences 

 

Oct17 MS Features


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