Pirque Index Overview
The PIRQUE Index is designed to track the performance of a list of assets that enjoy strong tail winds.
Therefore they are great candidates to buy and hold for the long term.
· it is an equally weighted index.
· it is a price return index, calculated without regard to cash dividends or stock splits.
· it tracks the price and yield performance, before any fees and expenses, regardless of the "universal" manager.
Eligibility is not restricted to any specific asset types.
However, based on PIRQUE's investment approach the historical constituents have been:
· common stock or ordinary shares of publicly listed companies (e.g. NASDAQ:AAPL)
· liquid crypto assets and tokens that are traded on a daily basis (e.g. BTC)
· indexes which represent a list of assets which could be held directly (e.g. INDEXNASDAQ:EMCLOUD)
We do not include private companies simply because valuation data is not easily available.
Generally speaking the criteria we follow to select assets is:
1. business drivers: assets that will derive the majority of their potential increase in value by being positively positioned to capture the fast propagation of at least one of the business drivers analyzed in the PIRQUE Stats.
2. opportunity option: in many cases we will select a company's stock as the best way to get indirect exposure to different types (or a combinations of) assets. These can be a product (e.g. iPhone), a person (e.g. Elon Musk), a brand (e.g. Disney).
2.1. In cases where the asset we seek (e.g. Porsche) is only available by getting exposed to too much noise (ETR:VOW3) we will not select it.
2.2. In cases where the asset we seek (e.g. Vimeo) is available by getting exposure to an asset that is neutral, but that by itself would not build strong conviction, we might still select it (e.g. NASDAQ:IAC).
3. new additions: we might wait until an asset has "seasoned" for a couple of months before including it. This is the case for most IPOs.
3.1. In several cases we might add assets that we end up removing only a quarter later. This does not conflict with our buy and hold design. We are bullish on the index holistically, and the addition of an asset does not imply a bullish or bearish position on that particular asset. We correct the index as we learn more. Over the last 5 years we have included 90 assets of which only 20 have remained as constituents for at least 2 years.
4. current constituents: we do not consider short term volatility when deciding wether to include an asset, even when it is anticipated. If a company's guidance is negative, our conviction on the business driver will be overarching and the company will not be removed.
· Whenever possible we try to hold assets via exchanges under strong rule of law regulation. e.g. NASDAQ:GGAL instead of BCBA:GGAL
· Whenever possible we try to index directly to the asset in which we are really interested. e.g. Euronext:PRX instead of JSE:NPN
· We believe liquidity is a continuum and so, if the asset is liquid in the sense a retail person could buy it, that is enough of a threshold.
· We do not consider tax implications.
The index's performance is evaluated within the rebalancing period.
During rebalancing, the performance of the index between the last and current version of PIRQUE Stats is calculated.
The PIRQUE Stats is published within weeks of the close of every quarter (i.e. every April, July, October, January).
No changes are made outside the rebalancing period.
All asset additions and deletions are made effective only during the rebalancing period.
From each new version of PIRQUE Stats we generate a long list of assets.
From that list, which we turn into an ideas matrix, we map out our investment ideas.
In the case of public assets (where there is less competition for access), we derive the constituents of the index for the time period until a new PIRQUE Stats version is published.
The rebalancing period is then the time period between when a PIRQUE Stats version is published (becomes available online) and the next opening of the markets, by which time the new list of assets should be held.
The PIRQUE Index derives significant inspiration from Bessemer Venture Partners Emerging Cloud Index.
We have been following the evolution of this index since inception, all the way to its partnering with Nasdaq and the ETF by Wisdom Tree.
Nothing on this web page is intended to constitute:i) an offer, or solicitation of an offer, to purchase or sell any security, other asset or service,ii) investment advice or an offer to provide such advice, oriii) a basis for making any investment decision.
Any company described on this document is intended to be illustrative of the types of investments that may be made by PIRQUE LLC.
For additional legal disclaimers please refer to https://www.pirque.vc/legal/.