North Canterbury News: April 28, 2022
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Theriseofthe stockpickers<br />
AMANDA BOWES-DURAND<br />
For those interested in share markets and how to<br />
make serious wealth from them there’s avery interesting<br />
investment firm with a growing <strong>North</strong> <strong>Canterbury</strong><br />
presence. This is the New Zealand based Australasian<br />
hedge fund start up, Chance Voight Investment Partners<br />
Limited (CVI Partners).<br />
Hedge funds, legendary across the world for their<br />
concentrated well-timed callsonthe sharemarketand the<br />
money they’vemadefor theirinvestorbaseweredescribed<br />
in arecentstudyas the‘smartmoney’inthe markets.<br />
Chance Voight has been established with aview to<br />
mining extraordinary profits from the Australian stock<br />
market and asBernard Whimp, the founder and CIO<br />
of Chance Voight, says‘We’ll bedeploying ourunique<br />
insightsand investment style with theaim of compounding<br />
investor capital at 20% per annum orbetter over multiple<br />
years’.<br />
Setting up CVI Partners in 2018 as aspecialist deep<br />
valuestock pickinginvestmentfirm,Bernard waslooking<br />
to capitalize on almost a decade of experience as a<br />
professional investor in companieslisted on theAustralian<br />
sharemarket(theASX).<br />
He concentrates on the ASX, as experience has shown<br />
himthat in this part of theworld that’s wheremany of the<br />
best sharemarketmoney-making opportunities are.<br />
So howdid CVI comeabout?<br />
“Well,” Bernard says, “It’sreally about the sheer joyof<br />
doingwhat you love day andnight”.<br />
Adecadeago,Bernard wanted to test atheory.Hemade<br />
aquick fortune by making offers to buy shares directly<br />
from shareholders incompanies listed on the NZStock<br />
Exchange.<br />
At Christmas time in2010, he launched aseries of<br />
audaciousoff-marketofferswhich sawhim pick upaprofit<br />
of almost $4million in amatter ofmonths, all kicked off<br />
with an initial$7,000investment. Daring to do something<br />
different made lots of money.<br />
To most people, the share market can be abewildering<br />
array of unfathomable numbers –Bernard sees itinfine<br />
granulardetail.<br />
The ASX, with its 2000 companies, provides the<br />
opportunity to be incredibly selectivewhenbuyingshares.<br />
Most years, heisable toidentify ahandful ofterrific<br />
opportunities. The NZX incomparison has only about<br />
160listed companies.<br />
Theshare market is essentially atreasure hunt, he says.<br />
“We’re really more like aprivate equity investment firm<br />
operating inlisted markets with all the advantages ofthe<br />
buy andsellability that listed marketsprovide butwithout<br />
the tortuous negotiations onpurchase that private equity<br />
requires.”<br />
CVI Partners Chief Investment Officer (CIO), Bernard Whimp<br />
The cornerstone of our investment view isthat we aim<br />
to never spend an investor dollar unless webelieve that<br />
we’regetting at leasttwo dollarsofvaluefor it.<br />
“Asafirm, wehunt for situations where wecan obtain<br />
substantial value for nothing, where we can buyastake<br />
in aworthwhile business that is worth alot more than the<br />
price weare paying.”<br />
As Bernard puts it, ‘guys like me don’t believe the<br />
passive index share investing that’s been popular over<br />
the last decade will continue todeliver good returns into<br />
the future and there’s now lots ofevidence emerging that<br />
this passive investment style that so many New Zealand<br />
investorsare involved with onewayor another, has‘hitthe<br />
wall’. We thinkthat ‘stock picking’ where you arelooking<br />
to hold a concentrated portfolio of winning situations<br />
with high probability to the upside maywell prove tobe<br />
asuperior share market investment strategy in the years<br />
ahead.<br />
He doesn’tratemostofwhat goes on around investment<br />
in the share market at all. “It’s essential in ahedge fund<br />
to establish anunconventional investment style. You’re<br />
not likely to make much money doing what everyone else<br />
does, asthe saying goes -You’ve got to be different, and<br />
you’vegot to be right!”<br />
We’re looking to deliver investors annualized returns<br />
at that 20%pa mark. We’re not reinventing the wheel<br />
in doing this. These types ofreturns are typical ofgood<br />
Australian hedge fund operations, it’s just that you’ve<br />
probably never heard of them, and no one’s ever offered<br />
you accesstoone in NewZealand.<br />
Bernard isbuilding Chance Voight with an innovative<br />
structure where besides managing money in the ASX<br />
for external investors Chance Voight will have alot of<br />
‘proprietary capital’ (the firm’s own money) atwork. To<br />
this end the Chance Voight parent company intends to<br />
undertake an initialpublic offering (IPO)inafew months’<br />
time. This will give smaller investors an opportunity to<br />
back the firm’s concentrated stock picking investment<br />
style and learn quite alot about the share market asthe<br />
same time.‘We’llbetryingtoget many of ourinvestment<br />
insights across toourshareholders’,saysBernard.<br />
Christchurchlawyer andfriend,PaulCurrie,has this to<br />
say about Bernard:<br />
“I have never met anyone who has the share market<br />
understanding and insights that Bernard does. He is very<br />
approachable and exceptionally interestingtotalkto.”<br />
Outside ofits ASX share market funds Chance Voight<br />
is keenly aware that what’s important for many New<br />
Zealand investors today is regular cash flow and income<br />
to help pay thebills in these inflationary times. To this end<br />
Chance Voight has itshigh yield mortgage fund available<br />
which paysinvestors regular interest at10% perannum.<br />
All investments in the fund are secured bymortgage<br />
over real estate and perhaps most importantly of all,<br />
the fund does not take on any property development<br />
risk, meaning that the fund does not lend on property<br />
development situations.<br />
As Bernard points out, “it’s lending onlower priority<br />
mortgages todevelopment projects that has caused so<br />
many historical problems for New Zealand investors over<br />
the years and the CVI Fund is designed not to take this<br />
type of risk on board”.<br />
“Withthe aimofcompounding investor capitalat20% per annumorbetterovermultipleyears’”<br />
INVEST IN THE CVI HIGH<br />
YIELD<br />
AT10<br />
MORTGAGE FUND<br />
%<br />
pa<br />
INVESTMENT PARTNERS LIMITED<br />
Key members of Chance Voight’s South Island, Rangiora based back office team<br />
EARN<br />
INTEREST<br />
TERMS FROM 12TO60MONTHS,<br />
INTEREST PAID QUARTERLY<br />
Full details onthe returns, risks and assumptions<br />
for this investment are available from the Information<br />
Memorandum. Call or email for further information.<br />
Investment in this fund isonly available to wholesale and eligible<br />
investors inaccordance with the Financial Markets Conduct Act 2013<br />
Visit cvimortgagefund.com<br />
Christchurch lawyer,friendand fellow director,<br />
Paul Currie,has this to sayabout Bernard:<br />
“I have nevermet anyone whohas<br />
theshare market understanding andinsightsthat<br />
Bernard has.He’sveryapproachable andexceptionally<br />
interesting to talk to.”
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