DanH wrote:Ray Benzinger deserves some credit for turning around what used to be called Integrated Growth Fund (which Dynamic bought in 1996) which sported a ~14% MER because of its high costs and tiny asset base (caused in part by its poor performance). Benzinger eventually turfed everything but kept Nu-Gro, which was eventually acquired a few years ago at a decent (but not rich) price. You could do worse than buy Dynamic Venture Opportunities fund.
And Ray's success belies the claim by other LSIF managers that their high fees are justified by all the time and effort they have to put in. For Ray it's a part-time job -- almost a hobby. His real job -- CFO of Dundee Bancorp -- would more than enough for most people.
You may know better on this one, Bruce, but I recall that a big part of Ray's job was to manage Dundee Bancorp's corporate investments in private businesses. And, IIRC, at one point that activity stopped and the company invested some capital into DVOF.
Still, it's a low cost operation at the margin because Dynamic's back office handles the admin, Ray talks to Goodman & Co. portfolio managers when dealing with public companies, and there are other aspects of the larger company that are leveraged for the benefit of the DVOF labour fund.
Big Bob wrote:It may not be precisely the same situation here but I once asked how my LSIF could hold Cisco and the answer was that one of their investments was bought out by Cisco and instead of cash, shareholders received shares of CSCO.
Had I been thinking I would have followed up by asking why they would continue to hold CSCO when it did not match the objective of the LSIF.
This is exactly the situation that revealed one of VenGrowth's weaknesses. As a major seller, often venture capitalists are required to hold onto the shares of the acquiring company for a specified period of time but venture capitalists have no business trying to manage a portfolio of publicly traded stocks because it's a very different focus and requires different skills.