Article

25 Nov 2024

Quality in M&A crosshairs

Mid Cap Quality Fund Portfolio Manager, Tim Riordan shares his M&A observations of high quality companies and the material demand for high quality assets across sectors.

Key highlights across the portfolio:

  • Quality assets bid – the consistent underlying bid for quality assets is impressive, if quality assets trade too cheaply they won’t last long in their current form. This somewhat underwrites valuations for true quality assets.
  • Buy v build – post the recent inflationary years, whether assets are trading cheap or rich, it is now cheaper to buy v build in many cases
  • Breadth of demand – perhaps the most interesting has been to see demand right across the spectrum of sectors and asset types – ag infrastructure, technology, financials and commodities, cyclicals & defensives, growth & value.

Click here to read more

Article

29 Oct 2024

In Banking, Boring Matters

Our Global Portfolio Manager, Sunny Bangia, discusses in his Livewire article two banking franchises that are of very high quality and have consistently delivered results for decades. ICICI Bank and Capital One Financial—both key holdings of the Blackwattle Global Quality Fund. Both are also known for being “boring,” which, in this case, is a good thing.

Please click here to read more

Article

Four Founder-Led Companies Worth Watching

How risky are founder led companies?

It has been an eventful week for certain ASX founder-led companies, as recent revelations exposed significant governance failures, sparking critical questions about board oversight and leadership.

In this note on Livewire Markets, Large Cap Portfolio Manager, Ray David, discusses some of the Governance failures at certain companies, and what makes a successful Founder led company.

Please click here to read more:

Article

15 Oct 2024

Empowering 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:

Click here to view

Article

1 Oct 2024

Selling 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

11 Sep 2024

Personal Trading by Fund Managers – A Conflict and Distraction

We started Blackwattle Investment Partners in an attempt to elevate Funds Management for our clients, investors, staff, and our communities.

But it’s not just about us – our entire industry can, and should, do better.

Too many fund managers have drifted away from their core fiduciary responsibility to their clients.

One glaring issue stands out: Personal Trading (‘PA Trading’) by fund managers.

PA Trading is an undeniable conflict of interest, and serves as a significant distraction.

It compromises the integrity of the investment management industry and can ultimately harm investment returns.

It is clearly not aligned with a client’s best interest.

The solution is: Eliminate it. Ban it. Abolish it.

An Industry Call to Action

The funds management industry must acknowledge the inherent risks, conflicts, and the distraction posed by Personal Trading.

By eliminating this practice, we can build trust and better align ourselves with the best interests of our clients.

At Blackwattle, we have already implemented a strict no-personal-trading policy, reinforcing our commitment to always act in our clients’ best interests.

In fact, we have committed over $15,000,000 of our own personal capital, alongside our clients, into the Blackwattle Funds.

We call on regulators, industry bodies, and fellow fund managers to join us in banning the practice of PA Trading.

Setting high ethical standards is our responsibility.

To Our Clients

Whether you’re a large superannuation fund, or an individual investor, we encourage you to demand accountability.

Personal trading has no place in fund management.

Together, let’s push the industry to put the clients’ interest first.

Letter to industry click here
AFR Article click here

Article

2 Sep 2024

The 2024 Reporting Season: 8 Key Insights

As we wrap up the August 2024 reporting season, several key trends and economic conditions have emerged across various sectors, reflecting the diverse pressures and opportunities currently influencing the Australian market.

Real Estate & Housing:

-The housing market continues to face significant supply constraints, driving up prices and limiting new developments.

Key Stock Insights:

-REA Group (REA): Listing volumes are improving, supported by strong market demand.

-Mirvac (MGR): Housing supply remains incredibly restricted, highlighting ongoing challenges.

-Stockland (SGP): New home enquiry levels are stable, with signs of potential growth despite broader market challenges.
Click here to read more

Article

12 Aug 2024

News Corp (NWS) – An Outsider With An Outsized Opportunity

What makes a successful leader? More importantly, what defines an exceptional leader?

In this note, Portfolio Manager Ray David discusses some traits of quality leadership such as capital allocation, cash flow, decentralized management, and the ability to make contrarian decisions to driver shareholder value creation.

Ray also draws parallels to Bill Anders’s turnaround of General Dynamics in 1991, and how a similar transformation is occurring at NewsCorp Inc led by CEO Robert Thomson.

Click here to view

Article

30 Jul 2024

Lessons Learned – The One That Got Away

Our experiences as investors teach us invaluable lessons about recognising and seizing high-quality investment opportunities.

High-quality companies can come in various forms, pattern recognition from our focus on these types of companies over many years reveal some common traits:

  1. Dominance in Their Niche: These companies carve out an advantage—be it product, cost, service, or technology—that sets them apart.
  2. Durable Demand: They can increase prices on current products, broaden share of wallet with new products, improve cost profiles, and scale efficiently.
  3. Sustained High Returns: Their returns are higher than most and stay that way longer than expected, we call this Enduring Quality – a key source of advantage for our process and strategy.
  4. Strong Leadership: Often led by founders or long-term executives who drive the company’s cultural aims.

Hear more from our Mid Cap Portfolio Manager, Tim Riordan, as he reflects on his past experience managing portfolios and key takeaways.

To read the article version please click here

More insights

Load More