MENU
 

PRE TAX NTA |$3.53

Value as at close of business on 7 March 2025

CIO Insights - 18 October

Hi everyone

Well, what a week for HM1!

As you know, we populate our portfolio with two sets of recommendations, 65% coming from our six core managers; with the remaining 35% coming from the pitches made at the annual Sohn Hearts & Minds Investment Leaders Conference. The core portfolio comprises the three highest conviction investment ideas of each manager and can be held for any length of time, as long as our managers maintain their belief in the investment thesis continuing to play out. Many of the stocks recommended at inception are still held in our portfolio and most have delivered exceptional returns for our shareholders.

But it’s now late October, and so our attention is drawn to the upcoming 2021 conference, where we will see some returning managers, as well as some new ones, pitch their best investment idea that they believe will play out over the coming 12 months. This is obviously very different to what the core managers do and recommend, as there is a clear finish line for how long we have for the theses to play out. Our managers will identify catalysts that they believe should see a re-rating in whatever stock they pitch between December 2021 and November 2022. And they will do this in 8 minutes flat! How exciting!!

But wait, that’s not all…

If you read the financial press or are on the Conference distribution list (it’s free), then you will have hopefully seen the announcement last week that we have managed to secure the one and only Charlie Munger – Vice Chairman of Berkshire Hathaway (and business partner to probably the greatest investor of all time, Warren Buffet), who at almost 98 years young, remains as sharp as ever. He has kindly agreed to do an exclusive Q&A session with Dr Mark Nelson, the Chairman and Co-Founder of Caledonia Investments, who are one of the core managers for HM1.

What a coup!!

And this defines why the Sohn Hearts & Minds conference has rapidly become one of the absolute must-attend investment forums in Australia. Not only do you get to hear the highest conviction investment ideas of some amazing managers, but this year you’ll get to hear from Charlie and Mark as well. In previous years we’ve been able to hear the wisdom of industry titans Ray Dalio, Howard Marks, and Bill Ackman just to name a few, such is the willingness for these guys to participate in what we do.

So put 11:00am on December 3 in your diaries folks. It’s a Friday, and it’ll be the only opportunity for you to listen to Charlie impart his wisdom, experiences, thoughts, and hopes for the future, probably ever in your lives!

The rest of the conference program, including the stock pitches will be available on demand for 5 days, with access from 8:00am Friday 3rd December to 11:59pm Wednesday 8th December AEDT.


Special Conference Ticket Offer

I’m excited to share that we have a limited number of discounted tickets available for HM1 shareholders. You can access 20% off by using this code at checkout: HM1-CONF

CLICK HERE TO REGISTER NOW

Event Schedule
Friday 3rd December

On demand program available from 8:00am AEDT*
Mr Charles Munger Q&A at 11:00am AEDT only (c
heck your timezone here)

*Tickets include 5 days access to the on demand program (concludes Wed 8th December 11:59pm AEDT)


The stock-pitching speakers we have announced so far include returner Babak Poushanchi from Cota Capital, whose 2020 pick Bill. com delivered a realised return of 179% for HM1 shareholders. His previous recommendations were DocuSign and SmartSheet, and these names give a great demonstration of the kind of stocks our shareholders become invested in, which would rarely even come onto the investment radar of most local investors. Also back in 2021 is Beeneet Kothari from Tekne Capital Management, who last year told us about Yeakha Limited in China, which went on to deliver an incredible 112% return for our shareholders in a little over three months.

I’ll talk more about the stock pitch managers next week because I’m running out of space already…

But that’s what the conference recommendations aim to do – provide a basket of shares where our selected speakers have identified game-changing events that could happen in the next 12 months to provide positive shareholder returns. Of course, given the shorter time frame that exists compared to core manager recommendations, we don’t expect every stock to necessarily deliver for the portfolio, so we maintain regular dialogue during the year to risk manage the investments as best we can.

And to finish this weeks update, we are proud to say that since its inception, the Hearts & Minds Group (ie the Listed Investment Company and the Conference) has now raised $30 million to support research partners including the Florey Institute of Neuroscience & Mental Health, Victor Chang Cardiac Research Institute, Black Dog Institute, Brain Cancer Collective, Murdoch Children’s Research Institute, MS Research Australia, Shake It Up, Macquarie University Centre for Motor Neuron Disease Research, JDRF, RPA Green Light Institute, and the Children’s Hospital of Westmead.

How good is that!
 

Stay safe

Rory Lucas
Chief Investment Officer
Hearts and Minds Investments Limited

Reminder: these are simply my general views and should not be taken as investment advice

 

If you would like to receive these weekly updates direct to your inbox each Monday, sign up here.

 

DISCLAIMER: This communication has been prepared by Hearts and Minds Investments Limited (ABN 61 628 753 220). In preparing this document the investment objectives, financial situation or particular needs of an individual have not been considered. You should not rely on the opinions, advice, recommendations and other information contained in this publication alone. This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Past performance is not a reliable indicator of future performance. This document may not be reproduced or copies circulated without prior authority from Hearts and Minds Investments Limited.

 

 

Recent Posts

Read the latest insights
A curated list of HM1 investor updates, portfolio news and other interesting articles.
Read More
Reporting Season Insights: HM1 Core Portfolio Holdings
We spoke to our dedicated fund managers for an update on some of our major portfolio holdings following reporting season.
The investing megatrends you can’t ignore (and some you should rethink)
James Marlay of Livewire sat down with Vihari Ross of Antipodes (HM1 Conference Fund Manager) and James Tsinidis of Munro Partners (HM1 Core Fund Manager) to discuss the biggest megatrends shaping the future.
2025: Where to Find Market Opportunities
There are opportunities abound for investors with an active management mindset in 2025. Get more insights from one of HM1's Core Fund managers, Magellan.
Significant increase in profit and increased fully franked dividend
We're pleased to declare an increased half-year fully franked dividend of 8.0 cents per share payable in April 2025.
 

Reporting Season Insights: HM1 Core Portfolio Holdings

We spoke to our dedicated fund managers for an update on some of our major portfolio holdings following reporting season.

Read More
March 10th, 2025
 

The investing megatrends you can’t ignore (and some you should rethink)

James Marlay of Livewire sat down with Vihari Ross of Antipodes (HM1 Conference Fund Manager) and James Tsinidis of Munro Partners (HM1 Core Fund Manager) to discuss the biggest megatrends shaping the future.

Read More
March 3rd, 2025
 

2025: Where to Find Market Opportunities

There are opportunities abound for investors with an active management mindset in 2025. Get more insights from one of HM1's Core Fund managers, Magellan.

Read More
February 25th, 2025
 

Significant increase in profit and increased fully franked dividend

We're pleased to declare an increased half-year fully franked dividend of 8.0 cents per share payable in April 2025.

Read More
February 20th, 2025
 

Magellan's Elisa Di Marco - 3 Trends That Will Define The Next Decade

Elisa Di Marco of Magellan (HM1 Core Fund Manager) joined Equity Mates to unpack 3 big megatrends shaping our world today (and how we can invest in them).

Read More
February 7th, 2025
 

Nine top stock picks to prepare your portfolio for 2025

Health care, ride-sharing, and the emerging world of YouTube entertainers are among the industries leading investors have picked for growth in 2025.

Read More
January 21st, 2025
 

Resources fundies reveal top picks ahead of ‘stellar’ 2025

Some of Australia’s biggest resources funds are gearing up for a bumper start to the new year.

Read More
January 6th, 2025
 

Qiao Ma: finding killer companies, surviving the GFC & why founders win

Qiao Ma, Portfolio Manager of the Munro Partners joins Owen Rask on The Australian Investors Podcast.

Read More
January 6th, 2025
 

10 top fund managers reveal their long-term stock picks

With valuations stretched and geopolitical tensions high, the new year offers plenty of potholes for investors. 

Read More
December 28th, 2024
 

Rikki Bannan – Don’t get caught up in momentum

Conference Fund Manager Rikki Bannan, Executive Director at IFM Investors, joins Equity Mates to discuss her standout 2023 stock pick, Telix, and explore what opportunities lie ahead.

Read More
December 19th, 2024
 

Professor Jane Butler: Sparking Hope for Spinal Cord Injuries

In this episode of the Hearts & Minds Podcast, we sit down with Professor Jane Butler to discuss her groundbreaking research into spinal cord injuries.

Read More
December 10th, 2024
 

Nick Griffin – The Nvidia story is not over

Nick Griffin, Founding Partner & Chief Investment Officer of Munro Partners joined the Equity Mates podcast in their Summer Series.

Read More
December 9th, 2024
 

HM1 CEO Succession

Hearts and Minds Investments Limited advises that Paul Rayson intends to retire from the position of Chief Executive Officer, effective 19 February 2025.

Read More
December 5th, 2024
 

How Trump will impact equity markets

The United States has spoken. President Trump has returned to the White House. But how can we cut through the noise to reveal the investment, economic and geopolitical ramifications?

Read More
November 26th, 2024
 

Trump unifies top investors in decade-long bullish outlook for US

Nick Moakes, CIO of the $72 billion Wellcome Trust, told the conference that too many investors were banking on a return to the ultra-low interest rates that prevailed over the past decade.

Read More
November 20th, 2024
 

These rock-star stock picks could get markets talking next year

Eleven rock stars of international and local funds management took to stage – each tasked with picking and pitching one company whose shares will take off over the next year.

Read More
November 18th, 2024
 

Is anyone brave or stupid enough to bet against America?

Stock pickers have been punished for betting against the US. The choice between consensus and contrarianism on American exceptionalism is now harder than ever.

Read More
November 17th, 2024
 

Sohn: NYSE-listed Estee Lauder’s Northcape Capital pick

Northcape Capital’s Fleur Wright this gives a rare opportunity to buy a high quality company at an attractive price.

Read More
November 15th, 2024
 

Sohn ASX stock pick: Ellerston Capital’s Chris Kourtis backs Perpetual

Chris Kourtis has put his biggest bet on embattled Perpetual – picking one of the most hated stocks on the ASX – that he believes will soon be the ‘cheapest listed asset manager of scale in the universe’.

Read More
November 15th, 2024
 

AI start-ups a threat to incumbent big companies

Paul Bassat predicts emerging artificial intelligence companies will disrupt sectors and overtake established incumbent companies just as rapidly as the seismic shifts that took place when the internet emerged in the mid-1990s.

Read More
November 15th, 2024
 

Howard Marks and Sohn’s big stars reveal seven rules for investing

Among the stock picks and stunts at the Sohh Hearts & Minds event, Howard Marks and Nick Moakes provided investors with long-term rules for playing markets.

Read More
November 15th, 2024
 

Sohn investors position for bullish but bumpy Trump ride

Australia and the rest of the world must adjust to a new Trump presidency that will deliver an expected bull market but also disruption, with the leader in waiting prepared to “create pain” to get his way.

Read More
November 15th, 2024
 

Sohn stock picker experts name best shares to invest in for year ahead

‍Don’t overlook down and out silver miners, legacy skincare brands ready for a revival and a big financial company suffering from a severe case of shareholder wealth destruction.

Read More
November 15th, 2024
 

Eleven stock tips from Sohn to get you through 2025

“There’s no finer place for the finance festival than in the festival city,” said Matthew Grounds. He, along with fellow Barrenjoey co-executive chairman Guy Fowler and investor Gary Weiss, is one of Sohn’s driving forces.

Read More
November 15th, 2024
 

Sohn Hearts & Minds Investments fund targets $1.5bn valuation

‍Hearts & Minds Investments chair Chris Cuffe is hoping for HM1 to grow to more than $1.5bn in the next five years.

Read More
November 14th, 2024
 

Galaxy Digital CEO Mike Novogratz believes bitcoin will hit $US100k

Bitcoin’s bounce to record highs in recent days is only the beginning of a fresh surge higher for cryptocurrency, says US billionaire Mike Novogratz.

Read More
November 9th, 2024
 

Why this New York hedge fund manager sees opportunity in European stocks

Influential New York-hedge fund manager Ricky Sandler will turn to Europe for his next stock pick.

Read More
November 6th, 2024
 

Antipodes’ Ross says short-term wealth hinges on US election

The portfolio manager says defensive stocks pose a bigger risk than the magnificent seven for investors that are overexposed to the American sharemarket.

Read More
November 5th, 2024
 

Concentration risk key for investors: Antipodes Partners’ Vihari Ross

The concentration risk in global stock indexes that has built up during the strong rise over the past year must now be a key consideration for global investors, according to Vihari Ross.

Read More
November 5th, 2024
 

The fundie betting big on China – with help from AI

Mr Mehta is sticking to his well-worn strategy: he’s hunting for companies across Asia that aren’t battling intense competition and have management teams focused on costs, cash generation and high payouts to shareholders.

Read More
November 5th, 2024