Kinsale Capital Management launched the Kinsale Compass Fund, a Global Equity Value Fund, on November 1st, 2011.
Kinney Asset Management L.L.C. acts as sub-advisor to the fund. Kinney Asset Management is a value orientated investment manager founded in 2003 by Peter Kinney with the financial backing of renowned value investor Joel Greenblatt of Gotham Asset Management.
Peter Kinney will act as the Kinsale Compass Fund's portfolio manager. Mr. Kinney is a top-performing, experienced investment manager with 23 years experience in global value investing.
The Kinsale Compass Fund will employ the same investment process as Acacia Capital L.P., a U.S. based investment partnership Peter Kinney has managed since inception in 2003.
Acacia Capital has shown ‘best-in-class’ performance; up 221.5% since its launch. The Fund has outperformed by almost three times the S&P 500 which is up 83.7% over the same time period. This performance places Acacia Capital in the top 1% of all U.S. mutual funds. *
The Kinsale Compass Fund employs a strict value orientated investment strategy. It is the manager’s strong held belief that a portfolio of quality companies purchased at extreme discounts to their true worth will provide superior risk-adjusted returns over a 3-5 year holding period. The fund will look globally to find the best possible companies at the cheapest prices.
Typically a discount of 50% or more to its intrinsic value is required to initiate purchase of portfolio companies. These discounts are typically only available in periods of extreme uncertainty in either the macro economic picture at large or when the company in question is facing uncertainty in its own business prospects. The manager actively engages management in order to ascertain this intrinsic value.
The fund will normally hold a large cash position. This cash holding offers the fund the flexibility to take advantage of extreme values following market or individual stock dislocations. The cash position will naturally shrink as good ideas become available and grow as stocks in general become more expensive. Typically the Fund will own between 15 and 25 securities.
Like Acacia Capital L.P., The Kinsale Compass Fund will not use leverage, derivatives, nor employ naked shorting.
The Irish-domiciled QIF Fund structure of the Kinsale Compass Fund offers investors a tax-efficient way to invest in the existing Fund strategy.
The Kinsale Compass Fund is suitable for long-term investors only. It will have a lock-up period of 1-year.
*from inception to end of January 2012, further performance related information is available upon request.