Letter

5 Oct 2024

Letter 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.”

Click here to view letter to the LTM Board

Click here to view AFR article

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

Letter

8 Aug 2024

Letter to the Board (ORA)

Blackwattle Mid Cap Portfolio Managers Tim Riordan and Michael Teran recently engaged with Orora (ORA) regarding their views on available levers to restore the company to a position of strength. To read a full copy of the letter sent to the Board of Directors please click the link below:

Click here to view

Fund Updates

14 May 2024

Letter to the Board of Directors (RIO)

Blackwattle Portfolio Managers Ray David and Joe Koh recently engaged with Rio Tinto (RIO) regarding their views on its dual class shareholding structure. The team advocating for a shift towards a single-class structure in line with best corporate governance practices.

To read a full copy of the letter sent to the Board of Directors please click the link below:

Letter to Rio Board of Directors

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