Hear from our Global Portfolio Manager Sunny Bangia, providing a market update discussing the following the United States Economy, The Federal Reserve, and the Chinese Economy.
Click the video below to view more:
Video
17 Oct 2024Article
15 Oct 2024Empowering Women in Funds Management
Blackwattle Investment Partners will be launching a mentorship program to empower more women into the funds management industry.
‘According to Deloitte, women accounted for just 18 per cent of C-suite positions globally in financial services organisations in 2023. However, without a more concerted effort, global growth in the share of women financial leaders may not even reach 25 per cent by 2031, Deloitte projected.’
Blackwattle are pleased to announce the launch of its Women in Finance Mentorship Program after engaging with superannuation funds and organisations at the forefront of female empowerment.
Our mentorship program marks the first phase of our broader commitment to advancing women in the finance industry. Future phases will likely include the launch internship, scholarship, and cadetship initiatives to further support and develop female talent at every stage of their careers.
Please click the link below to view the article:
Letter
9 Oct 2024Blackwattle’s response to Rio Tinto’s US$6.7b offer for the acquisition of Arcadium Lithium
Following Rio Tinto offer for the acquisition of Arcadium Lithium, Blackwattle Mid Cap Quality Portfolio Managers Michael Teran and Tim Riordan provide a response below:
Video
Blackwattle Sees Rio’s Lithium Bid As Opportunistic
Blackwattle Investment Partners Portfolio Manager Tim Riordan expresses concern about Rio Tinto’s (ASX: RIO) approach to Arcadium Lithium (ASX: LTM), viewing it as opportunistic and undervaluing the company.
Tim highlights Arcadium’s (ASX: LTM) unique assets in Argentina and Canada are difficult to replicate and provide strategic value beyond immediate earnings. He suggests a potential value greater than the $4-6 billion range reported, noting that Arcadium has opportunities for significant growth.
Letter
8 Oct 2024Rio Tinto’s Arcadium Lithium Bid Is A Lowball Offer According To Shareholder – ABC News
Our Mid Cap team has written to the management and board of Arcadium Lithium, imploring them to walk away from any opportunistic offers. Mining giant Rio Tinto has since confirmed to the ASX it has made a non-binding approach to Arcadium Lithium.
Our Blackwattle CEO Jarred Rubin speaks with Australian Broadcasting Corporation (ABC) The Business, about why we believe Arcadium Lithium is deeply undervalued, and what an appropriate sale price could look like.
Letter
5 Oct 2024Letter to the Board (LTM)
Blackwattle Mid Cap Portfolio Managers Tim Riordan and Michael Teran recently engaged with Arcadium Lithium (LTM) regarding their views on LTM’s valuation opportunity and feedback on reports of potential talks with Rio Tinto for the acquisition of LTM.
In a letter to Arcadium’s board, Tim and Michael urged the company to reject any bid that doesn’t sit around the $US8 billion mark, noting a sharp decline in the share price on the back of the lithium price crash.
“Arcadium Lithium’s share price has fallen 63 per cent this year on weak lithium markets and reached an all-time low last month,” Any offer would have to be at a “significant premium” to realise the company’s growth potential.
“Global lithium markets appear to have bottomed out, with lithium chemical indices stabilising, and in our opinion, the timing of this potential sale could not be at a more value destructive period for shareholders.”
Article
1 Oct 2024Selling your bank shares? Here’s three small-cap alternatives to consider
While shares of Australia’s major banks have delivered strong gains this year, high valuations, structural pressures, and the looming threat of RBA rate cuts – with the potential to squeeze margins – are clouding the outlook for future returns. For those selling bank shares to lock in profits, but keen to retain exposure to Financials that still offer significant growth potential, lead Portfolio Manager, Robert Hawkesford discusses with livewire markets three small-cap alternatives to consider.
Please click here to hear more
Article
30 Sep 2024A crisis facing aged care: Can government support revitalise bed supply ahead of the baby boomers?
Hear from our lead Investment Analyst David Meehan discuss the growing demand in aged care facilities and the new legislation to address the issues raised by both the Royal Commission and the Aged Care Taskforce.
Please click here to hear more
Investment Strategy
27 Sep 2024Lessons Learned: Question Everything
At Blackwattle Investment Partners, we believe in sharing the stories behind our mistakes because these lessons drive both personal and professional growth.
Rather than shy away from mistakes, we embrace them as learning opportunities.
Episode 3 – Digging Deeper: RCR Tomlinson
Here’s a story from our Managing Director Michael Skinner and one of the key investment mistakes that he made during his own career.
In 2018, Michael made an investment mistake that left a lasting impact on how he approaches decision-making in markets. He invested in RCR Tomlinson, a mining services company with a history spanning 120 years.
Despite constant reassurances from management and the Board, a miscalculation in their solar energy projects led to their ultimate downfall.
The company underestimated rock hardness, leading to massive cost overruns and an emergency need for capital. Almost a month later, that capital was gone, and so was the company.
Key takeaways from this experience:
- Question Everything: Management teams make mistakes. It’s important to dig deeper and never assume that surface-level information is enough.
- Challenge Assumptions: No matter how uncomfortable, challenging what you hear ensures that you fully understand the situation, especially in complex industries.
- Transparency is Key: Businesses must be open about their challenges. When issues are hidden, it’s a red flag.
As investors, we need to demand transparency.
This lesson is foundational to Blackwattle’s approach today. We relentlessly pursue quality in businesses, but we also know the importance of asking tough questions and constantly improving our investment processes.
News
25 Sep 2024ausbiz: Mergers and Acquisitions
Hear from our lead Senior Analyst, Peter Wilson, on ausbiz outlining the significance of Blackstone’s $24 billion acquisition of AirTrunk. Peter highlights the acquisition as a benchmark in the data centre sector. He asserts that high-quality data centre providers like AirTrunk command premium prices compared to average providers, debunking the notion that any capital-backed entity can succeed in the market. Peter also provides an update on the Webjet demerger and performance following its listing on the ASX.
