Parsad Posted May 18, 2013 Share Posted May 18, 2013 I don't usually post about the funds or my company on here, but I'm celebrating our seventh anniversary of operations. Here is a letter that I sent out today. Cheers! Dear Friends & Partners, We hope this letter finds you all well! May 1st was the 7th Anniversary of operations for Corner Market Capital and MPIC Fund I, LP. When Alnesh and I started the funds seven years ago, our business plan had us raising $25M over the next five years…running a successful fund and exuding a confident air about us. We had verbal commitments from about 8 people for $2.5M…the start was going to be glorious! When the fund documents were ready, we sent them out with gleeful anticipation. None of the capital materialized. Instead, three investors with no real connection to us ended up being our first investors. We launched MPIC Fund I, LP with 3 partners and $500K. An inglorious start…but a start nonetheless! For that, we would like to thank both Mr. Andrew Cooke and the Masters Family for having faith in us, as well as the Kiefer Family who joined shortly thereafter. Instead of our faces appearing all over the news as the new hotshot fund managers, we toiled in obscurity, learning our craft, slugging away, working to gather assets, and outperform our comparative index. Since inception, MPIC Fund I, LP has returned +11.5% annualized, ending April 30th, 2013, versus +5.1% for the S&P500 TR. That was achieved with no shorting, no margin or debt, and no leverage other than the occasional purchase of call options during one of the most tumultuous periods in the last 100 years. We also operated with no lockup and no fixed management expense ratio. Essentially a model that very few in the industry follow, and one that Wall Street would suggest was almost certainly doomed to failure! In seven years, we are now at $7M under management in our funds…a far cry from the $25M we dreamed about long ago. But we learned a number of things by managing such a small amount of capital. The two most important: • Being extremely efficient with fund operations. • And who we bring into the funds, is far more important than how much capital we bring in. We've been very fortunate with our partners, with very few redemptions in our history. Our partners also have a keen grasp of the type of culture we've created within our little firm. We thank you for your trust and support! We have also been fortunate to find very efficient service providers. We would like to thank: • Mr. Ajay Desai and his team at UBS in Chicago • Mr. Alan Bell at Dorsey & Whitney LLP in Salt Lake City • Mr. Ron Niemaszyk and his team at Patke & Associates in Chicago • Mr. Doug Vicic and his team at RBC Dominion in Vancouver • Mr. Scott Larson at Lohn Caulder LLP in Vancouver • Mr. Ian Robertson at Robertson Neil LLP in Vancouver Over the years, we have received requests from investors outside of North America, and have not been able to service them. We are in the process of launching MPIC Fund Offshore…aiming for July 1st, but may end up being August 1st. If you would like to join our waiting/information list, please contact us and we'll get the information out to you as soon as it is ready. We would also like to thank a few people who have helped us along the way: • Mr. Prem Watsa, for telling me to just launch a fund with whatever money I could raise to build a track record. • Mr. Francis Chou, for being the perfect role model as a manager and human being. • Mr. Tim McElvaine, for being such a great friend to us, and showing us what a manager with humility looks like. • Mr. Mohnish Pabrai, for just being the rockstar friend that you are and teaching us to think outside of the box! • Mr. Glen Rollins and Mr. Andrew Cooke, who serve as directors for Corner Market Capital U.S. and are our sounding boards! After seven years, my days seem to have gotten easier and easier. I think it's because we've gotten to know our business inside and out, and the sheer fact that we love what we do…it never feels like work! We thank you for this privilege and for your friendship! Sincerely, Sanjeev Parsad Link to comment Share on other sites More sharing options...
racemize Posted May 19, 2013 Share Posted May 19, 2013 Congrats, and good luck going forward! Link to comment Share on other sites More sharing options...
bmichaud Posted May 19, 2013 Share Posted May 19, 2013 Congrats Sanjeev! I have no doubt you will eventually attract assets far greater than your original estimates - the track record, repeatable contrarian process, and the lack of leverage and esoteric investments MUST prove appealing to a wide investor audience starved for high risk adjusted returns. If anyone else on this board is similar to me at all, then they have told many people about the Canadian hedge fund manager they follow via a value investment message board who has a ruthlessly efficient, effective and repeatable process. Eventually the word will get out - it is like how Ben Graham answered Buffett's question as to how does one know if the market will ever recognize value....nobody knows when, but value is always realized. I just hope that once you are running a $1B fund that you still outline your process, even if in vague terms, here on this board! Link to comment Share on other sites More sharing options...
Parsad Posted May 19, 2013 Author Share Posted May 19, 2013 Congrats Sanjeev! I have no doubt you will eventually attract assets far greater than your original estimates - the track record, repeatable contrarian process, and the lack of leverage and esoteric investments MUST prove appealing to a wide investor audience starved for high risk adjusted returns. If anyone else on this board is similar to me at all, then they have told many people about the Canadian hedge fund manager they follow via a value investment message board who has a ruthlessly efficient, effective and repeatable process. Eventually the word will get out - it is like how Ben Graham answered Buffett's question as to how does one know if the market will ever recognize value....nobody knows when, but value is always realized. I just hope that once you are running a $1B fund that you still outline your process, even if in vague terms, here on this board! Thanks Bmi! Very kind words. I have so much fun running the funds and this board, that I don't think I will ever stop doing either. Cheers! Link to comment Share on other sites More sharing options...
bmichaud Posted May 19, 2013 Share Posted May 19, 2013 We will all be better for it :) Best of luck! Link to comment Share on other sites More sharing options...
Guest Posted May 19, 2013 Share Posted May 19, 2013 Congrats, Sanj! With a wonderful track record, very high integrity and fairness to your partners (and us urchins!), I'm sure your AUM will continue to grow. Thanks for all that you do. :) Link to comment Share on other sites More sharing options...
goldfinger Posted May 19, 2013 Share Posted May 19, 2013 Congratulations Sanjeev! You are quite an inspiring human being! ;) Link to comment Share on other sites More sharing options...
Palantir Posted May 19, 2013 Share Posted May 19, 2013 Congrats sir. How are you planning on marketing and increasing the visibility to investors going forward? Link to comment Share on other sites More sharing options...
collegeinvestor Posted May 19, 2013 Share Posted May 19, 2013 Congrats! Thanks for the board too. Link to comment Share on other sites More sharing options...
giofranchi Posted May 19, 2013 Share Posted May 19, 2013 Congrats Sanjeev! I have no doubt you will eventually attract assets far greater than your original estimates - the track record, repeatable contrarian process, and the lack of leverage and esoteric investments MUST prove appealing to a wide investor audience starved for high risk adjusted returns. If anyone else on this board is similar to me at all, then they have told many people about the Canadian hedge fund manager they follow via a value investment message board who has a ruthlessly efficient, effective and repeatable process. Eventually the word will get out - it is like how Ben Graham answered Buffett's question as to how does one know if the market will ever recognize value....nobody knows when, but value is always realized. I just hope that once you are running a $1B fund that you still outline your process, even if in vague terms, here on this board! I agree 100%! And, Sanjeev, fantastic letter! 8) giofranchi Link to comment Share on other sites More sharing options...
beerbaron Posted May 19, 2013 Share Posted May 19, 2013 Congrats, 7 years and a great track record is quite an accomplishment! BeerBaron Link to comment Share on other sites More sharing options...
Hielko Posted May 19, 2013 Share Posted May 19, 2013 Congrats, and have to say that I'm somewhat surprised that there isn't more interest in a fund with your track record, fee structure and risk. Link to comment Share on other sites More sharing options...
zippy1 Posted May 19, 2013 Share Posted May 19, 2013 Dear Sanjeev, Congratulations! Seven years! Seven very fruitful years! best regards, Zippy Link to comment Share on other sites More sharing options...
maxthetrade Posted May 19, 2013 Share Posted May 19, 2013 Congrats Sanjeev, clearly you can not only talk the talk but walk the walk! Link to comment Share on other sites More sharing options...
Packer16 Posted May 19, 2013 Share Posted May 19, 2013 Sanjeev, Congrats and thank you for the board and the your annual shindigs in Toronto. Are you still planning on a more focused fund? Packer Link to comment Share on other sites More sharing options...
meiroy Posted May 19, 2013 Share Posted May 19, 2013 Congrats! Very impressive how you just decided to start a fund and kept with it all these years. Link to comment Share on other sites More sharing options...
Icarus Posted May 19, 2013 Share Posted May 19, 2013 Congratulations! That's an impressive record. I'm always amazed by the great investors that you have on this board. Link to comment Share on other sites More sharing options...
premfan Posted May 19, 2013 Share Posted May 19, 2013 Congrats man ! It would be fun if you can acquire permanent capital so all your friends on this board can join you on the fantastic journey of compounding. Link to comment Share on other sites More sharing options...
Kraven Posted May 19, 2013 Share Posted May 19, 2013 Congratulations! Link to comment Share on other sites More sharing options...
giofranchi Posted May 19, 2013 Share Posted May 19, 2013 Congrats man ! It would be fun if you can acquire permanent capital so all your friends on this board can join you on the fantastic journey of compounding. +1!!!! ;) giofranchi Link to comment Share on other sites More sharing options...
OracleofCarolina Posted May 19, 2013 Share Posted May 19, 2013 Congrats man ! It would be fun if you can acquire permanent capital so all your friends on this board can join you on the fantastic journey of compounding. Yes,indeed...congrats Sanjeev...you are the man! Link to comment Share on other sites More sharing options...
writser Posted May 19, 2013 Share Posted May 19, 2013 Congratulations. Nice track record! Link to comment Share on other sites More sharing options...
rijk Posted May 19, 2013 Share Posted May 19, 2013 congratulations and thanks for keeping this wonderful place to learn about value investing and get some great ideas..... regards rijk Link to comment Share on other sites More sharing options...
ERICOPOLY Posted May 19, 2013 Share Posted May 19, 2013 Congratulations and thanks for the best investing resource available anywhere. Link to comment Share on other sites More sharing options...
bookie71 Posted May 19, 2013 Share Posted May 19, 2013 Congratulations and thanks for the board. It takes a lot of guts to do what you did. Keep it up Link to comment Share on other sites More sharing options...
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