The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Rondure Overseas Fund declined 5.66% in Q3 2023, underperforming its benchmark as rising US interest rates continued to attract capital away from riskier international and emerging market assets toward high-yield US Treasuries. The fund's overweight exposure to small-cap stocks, which faced acute liquidity challenges, contributed to underperformance. Chinese consumer stocks struggled as post-Zero Covid recovery disappointed, though valuations may already reflect corporate pessimism. Despite near-term headwinds, the portfolio demonstrates attractive fundamentals compared to US large caps, with higher dividend yields, lower multiples, and stronger balance sheets. The manager maintains conviction that international and emerging market stocks are reasonably priced with potential dual benefits from undervalued currencies and equities. Key catalysts include peak US inflation and interest rates leading to dollar weakness, and potential Chinese stimulus to address economic challenges. The fund's positioning reflects patience for these macro conditions to shift, with cash representing the largest allocation amid current market dynamics.
International and emerging market small-cap stocks are attractively valued with better fundamentals than US large caps, positioned to benefit from eventual peak in US rates and dollar strength, plus potential Chinese stimulus.
The manager believes the catalyst for international and emerging markets will be peak inflation/interest rates leading to a peak dollar, and/or significant stimulus from China. If these conditions materialize, stocks outside US borders are reasonably priced with powerful potential benefits from currencies that also appear undervalued based on purchasing power parity analysis.
As of Sep 30, 2023
Laura Geritz, CFA, served as CEO and Portfolio Manager of Rondure Global Advisors, owning 51% of the firm at closure. She was 49 years old when the fund liquidated and led a team that included Co-CIO Blake Clayton and Partner Jennifer McCulloch Dunne. Geritz founded the woman-owned SEC-registered investment advisory firm on October 31, 2016, in partnership with Grandeur Peak Global Advisors (49% ownership). The firm operated with a virtual work model and employed 4 staff total, outsourcing most administrative, trading, compliance, and IT services to Grandeur Peak. Despite the innovative approach and experienced team, the firm was unable to achieve sufficient scale to remain economically viable.
The fund employed a 'Quality Compounders' strategy focused on businesses with strong fundamentals, established brands, and distinct competitive advantages. The investment process began with quantitative screening of global stocks over $1.5 billion market cap, narrowing candidates by financial strength and earnings consistency. The firm used proprietary 'CGP' metrics to assess competitive moats through market rigidity (club), customer loyalty (glue), and network platforms. The approach was explicitly anti-index and go-anywhere, seeking to exploit opportunities created by widespread passive investing. ESG factors were integral through a CGP2 framework incorporating country risk and political considerations aligned with UN PRI principles.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The manager demonstrates solid conviction through specific portfolio positioning (overweight small caps, international focus), detailed fundamental analysis comparing portfolio metrics to S&P 500, and clear catalyst identification. Named holdings with performance attribution and explicit positioning choices support moderate-high conviction despite hedged language around timing.
Growth Outlook
The manager expresses caution about current market conditions, noting that equities will struggle until US rates stop rising and inflation is defeated. However, there's underlying optimism about international markets being attractively valued and positioned for eventual recovery when macro conditions improve.
Risk Appetite
The fund maintains cash as its biggest weight, reflecting defensive positioning amid rising rates. While maintaining exposure to small-cap international stocks, the elevated cash position indicates reduced risk appetite in current environment.
Capital Deployment
Cash represents the biggest weight in the portfolio, indicating significant de-risking from equity positions. While specific cash percentages aren't provided, the emphasis on cash as the largest allocation suggests meaningful capital has been pulled back from risk assets.
Forward Guidance
The manager is explicitly waiting for specific conditions to change - peak US rates/inflation or Chinese stimulus - before expecting meaningful deployment. Language suggests patience rather than active deployment bias in current conditions.
Language Signal
Language is balanced between acknowledging current challenges (rates, China weakness, small-cap struggles) and highlighting opportunities (cheap valuations, currency upside). Risk language is present but balanced with opportunity framing.
Perceived Risk
The manager identifies several specific risks including rising US rates, inflation persistence, Chinese economic weakness, and small-cap liquidity challenges. These risks are discussed with meaningful detail and context, though not presented as systemic threats requiring extreme caution.
Opportunity Density
Despite current headwinds, the manager sees attractive opportunities in international and emerging markets, citing cheap valuations, currency upside potential, and specific geographic opportunities. The tone suggests selective but meaningful opportunities exist for patient investors.
Time Horizon
The manager emphasizes waiting patiently for macro catalysts (rate peaks, Chinese stimulus) without specific timeframes, suggesting a multi-year investment horizon. The focus on fundamental value and willingness to hold through current volatility indicates longer-term orientation typical of international value investing.
Top Conviction Themes
Key Catalysts
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