The Rate Of Change

The Rate Of Change

por Murdoch Gatti

Emprendimiento Inversiones

Temporada 1

#34 - Adrian Redlich | Navigating lending to Agriculture, Resources, Commercial Property & Hard Assets

Adrian Redlich is the CEO and founder of Merricks Capital. Adrian and I cover a wide range of fascinating topics, from Merricks Capital’s recent acquisition by Regal Partners to their strategic approach to lending against hard assets. We dive deep into sectors like commercial real estate, agriculture, and power, and to discuss how Merricks Capital’s flexible lending model has helped them capture high returns, with their Agricultural Credit Fund delivering up to 11% and the Partners Fund generating 9.5%. Adrian also shares his views on the importance of counter-cyclical lending, the impact of interest rate changes, and the synergies between different asset classes, from farmland to infrastructure projects. We also touch on their approach to ESG and how Merricks navigates challenges in the renewable energy and power sectors. I really enjoyed this conversation, and I encourage you to stick around for the disclaimer at the end of the ROCast. As always, feel free to share your thoughts by reaching me at mgatti@ywm.com.au. With that being said I hope you enjoy this conversation as much as I did so sit back, relax, and enjoy!

#33 - Michael Frazis | Where to for Big Tech, Chip Makers, A.I. & Life Sciences?

Michael Frazis is the Managing Director and Portfolio Manager of Frazis Capital Partners, which has a focus on companies with explosive growth potential predominately in the Tech and life sciences space. Michael and I discuss a variety of fascinating topics, from his fund’s 80% performance this year (as of time of recording) to his thoughts on navigating the tech and biotech sectors. We dive into key stocks like Nvidia, DroneShield, Clarity Pharmaceuticals, Mercado Libre, Newbank and TransMedics. We also explore Michael’s AI-backed risk management tool, which has been integral in locking in future profits and avoiding large drawdowns in volatile markets. I really enjoyed this conversation, and I encourage you to stick around for the disclaimer at the end of the ROCast. As always, feel free to share your thoughts by reaching me at mgatti@ywm.com.au. With that being said, I hope you enjoy this conversation as much as I did, so sit back, relax and enjoy.

#32 - Bo Zhuang | Forging A Next-Gen Family Office Whilst Honouring Legacy

Bo Zhuang is one of the three Managing Partners at Initium within the Hayson & Huang Family Office. You may be thinking the name Hayson within the circles of property development rings a bell. You would be right, as the Hayson Group, founded by Ian Hayson, most notably was the first private developer to recognizse the potential of Darling Harbour. Their Darling Harbour development has been a catalyst for the transformation of the inner city and was formally opened by the Queen of England! Other high-profile projects include Sky Garden in Sydney’s Pitt Street Mall, the Manly Wharf retail development, Kogarah Town Shopping Centre, Cremorne’s Metropole Shopping Centre, and Hillsdale’s Southpoint Shopping Centre. On that note, you may not be familiar with the Huangs. With close to three decades of operation both internationally and domestically, they are just as well regarded. The Huang Group, founded by James Huang, stands as a multifaceted conglomerate, uniting various entities spanning property, financial investments, and community-based developments. The Huang Group has founded a strong legacy and reputation within the Chinese and Australian Chinese communities, marked by the creation of several renowned communities. Why I wanted to get Bo on is that, alongside his partners Max Hayson and Victor Huang, the sons of the prominent patriarchs mentioned, they are quite literally embracing the essence of next-gen multi-generational wealth through a joint family office. Join us and hear from Bo’s extensive experience in the banking space as we discuss how Initium has gone about forging this new generation whilst honouring family legacy. Bo also unpacks the how. Initium invests primarily in retail property centers, focusing predominantly on prime locations on the eastern seaboard such as Bondi, Mosman, Manly, and St Leonards. Meanwhile, the H&H Family Office has expanded its interests across nearly all financial services, creating solutions for High Net Worth families. These include: The Commercial Property Fund, which targets a return of 7.5% to 8.5% p.a., with FUM of $53 million, 100% weighted occupancy, 20% co-investment, and a 5-year weighted average lease expiry. The Private Credit Fund, with a direct deal approach, which targets double-digit returns p.a. The Mosman Development Project Fund, with $15 million raised, projects a 15% return p.a., with 30% to 50% co-investment and a 2 to 4-year period. Initium also provides access to other upcoming direct property development projects. Expansion via organic growth and acquisition into the High-Net-Worth Wealth Management and financial advisory space. So, before we get into this podcast, please remember this podcast is intended for entertainment purposes only and should not be taken as financial advice. Be sure to listen to the disclaimer at the end of this ROCast, and keep your feedback coming. You can reach me at mgatti@ywm.com.au. I hope you enjoy this conversation as much as I did, so sit back, relax, and enjoy.

#31 - Melissa Hosgood | Funding the Entire Lifecycle of Real Estate Projects

Melissa Hosgood is the Managing Director, Portfolio Manager, and Founder of Labassa Capital. Labassa Capital is an Australian real estate credit fund, target return of 9%, annualized real return of 12.46%, with a 0.5% management fee. What I found interesting was Labassa's unique approach to funding projects. In particular they fund the entire lifecycle of real estate projects, from land subdivision to the rise of distribution centers and versatile business parks. Melissa delves into the intricacies of the credit fund, discussing its boutique-level operations and focus on high-potential property asset classes. We explore the evolving landscape of distribution centers, driven by the increasing demand for rapid delivery and the changing culture of the delivery business. We also touch on the "work anywhere" strategy, made more accessible by light industrial warehouses and business parks, allowing businesses to thrive in diverse locations. Join us as Melissa unpacks the credit fund's strategy, direct projects, and the risk management techniques employed to ensure positive outcomes for investors. Whether you're interested in real estate investment or seeking insights into innovative asset management, this episode offers valuable perspectives. So, before we get into this podcast, please remember this podcast is intended for entertainment purposes only and should not be taken as financial advice. Be sure to listen to the disclaimer at the end of this ROCast, and keep your feedback coming. You can reach me at mgatti@ywm.com.au. I hope you enjoy this conversation as much as I did, so sit back, relax, and enjoy.

#30 - James McDonald | Unpacking Titanium, Healthcare, Japan, Resources & More

James McDonald is one of the portfolio managers for Pengana’s High Conviction Equities Fund. James brings extensive experience from his time at Hunter Hall and Bankers Trust and shares his journey of building and managing the High Conviction Fund, which was founded in 2014 and now manages roughly $58 million as of the time of recording. The fund, as of 28th June 2024, has an ethical framework and has returned on average 24.7% since inception, 14.4% over 5 years, 8.6% over 3 years, 33.6% over 2 years, and 55.8% for the past year. As a high conviction strategy, the fund holds roughly 20 companies at a time. The benchmark is the MSCI World Index, with roughly 50% in healthcare, 40% in materials, and the remainder across communication services and consumer discretionary. We discuss quite an array of topics and companies from healthcare and resources all the way to the Japanese market and where the investment opportunity may be. Also, if you are curious about exploring new areas like myself, then I think you are really going to enjoy diving into the world of titanium with James. In this ROCast, James unpacks the titanium market and manufacturing process. In particular, James delves into IperionX's groundbreaking technology to produce titanium metal more efficiently and sustainably. James explains how the traditional Kroll process for producing titanium is highly inefficient, losing around 60% to 80% of the material and making it impossible to recycle scrap effectively. In contrast, IperionX's patented, innovative hydrogen-based process converts scrap titanium into a powder that can be reused, drastically reducing scrap waste. You will learn about the potential for this technology to revolutionize various industries by making titanium more accessible and affordable. We also discuss the broader implications for the US supply chain, the environmental benefits of this new method, and the vast array of applications for titanium, from consumer electronics to military and aerospace. Companies Discussed: Pengana (PE1.ASX) Clarity Pharmaceuticals (CU6.ASX) Genetic Signatures (GSS.ASX) Roche Diagnostics (ROG.SW) Eli Lilly (LLY) Novo Nordisk (NVO) CSL (CSL.ASX) ResMed (RMD.ASX) Transmedics (TMDX) IperionX (IPX.ASX) Apple (AAPL) Boeing (BA) Airbus (AIR.PA) WA1 Resources (WA1.ASX) Brazilian Rare Earths (BRE.ASX) Tesla (TSLA) Subaru (7270.T) Hitachi (6501.T) Isuzu (7202.T) Toyota (7203.T) Nintendo (7974.T) Sony (6758.T) Spotify (SPOT) So, before we get into this podcast, please remember this podcast is intended for entertainment purposes only and should not be taken as financial advice. Be sure to listen to the disclaimer at the end of this ROCast, and keep your feedback coming. You can reach me at mgatti@ywm.com.au. I hope you find this conversation as insightful as I did. So sit back, relax, and enjoy.

#29 - Russel Pillemer | Innovative Future of Global Private Credit

Russell Pillemer is the CEO of Pengana Capital Group. Russell brings extensive experience from his time as an investment banker at Goldman Sachs and shares his journey of founding and growing Pengana Capital Group, which now manages $3.5 billion across 12 strategies, ranging from domestic and global equities to domestic and global private credit. We delve into the how to of the strategies, in particularly their innovative approach to listed private credit and trying to solve the problem of having unlisted assets inside a Listed Investment Company or Trust vehicle trading at a discount to net asset value due to volatility from market uncertainty. If you are curious about how or why they have structured it this way? Then join us and hear Russel unpack everything from their bottom-up investment philosophy to their pioneering work in attempting to smooth the volatility for unlisted private credit in exchange traded markets for retail clients. If you are like me, then I trust you will be also eager to see how the industry responds to this new approach and curious whether it may become the new normal. So, before we get into this podcast, please remember this podcast is intended for entertainment purposes only and should not be taken as financial advice. Managed Funds Discussed: Pengana Capital Group Pengana equities funds (overview) Pengana Private Equity Trust (ASX: PE1) Pengana Global Private Credit Trust (ASX:PCX) Be sure to listen to the disclaimer at the end of this ROCast, and keep your feedback coming. You can reach me at: mgatti@ywm.com.au. www.yorkwealth.com.au

#28 - Andrew Mitchell | Outlook for Aussie & Global Growth Small Caps

Andrew Mitchell is one of the founders at Ophir Asset Management. Andrew alongside Steven Ng and other colleagues manage four funds. Ophir has a fundamental, bottom up research approach aimed at identifying businesses domestically and internationally with the ability to meaningfully grow and compound earnings overtime. To put it another way, they want to find new companies before they end up in Vogue. For me I really enjoyed delving into the process of the how, in particular how they go about trying to be the first to discover a new business before it gets in Vogue. Andrew unpacks Transmedics and Life 360 and their process which enabled them to be confident to commence buying into the businesses before Mr Market . Also, before we get into the conversation let me ask you ask you this question Andrew asked me. How long does it take to make 10 times your money compounding at 22 % per annum? If you have worked it out…. Brilliant…. if you haven’t or you are wondering why this is relevant then join us and hear Andrew breakdown why its an exciting number for them. Companies Discussed: Transmedics (TMDX - NASDAQ) Life360 (360.ASX) You can reach me at mgatti@ywm.com.au. I hope you find this conversation as much as I did. So sit back, relax, and enjoy.

#27 - Sunny Bangia | Global Equities, Tech, US Housing, India & More

Sunny Bangia is the Global Portfolio Manager at Blackwattle Investment Partners about the outlook for Global equities, U.S. housing, semiconductors, emerging markets like India & Brazil, advancements in AI and Memory, Machine Learning, and the economic shifts in China. For me I really enjoyed delving into the topic of Memory with Sunny. As the tech world buzzes with developments in AI and machine learning, and with companies like NVIDIA at the forefront, it prompts us to ask: What supports this growth? Join us as Sunny unpacks the critical role memory plays in powering these technologies. He discusses the increasing demands in smartphones, PCs, and data centers, and the long-term structural trends shaping this sector. Companies Discussed: Builders FirstSource (NYSE: BLDR) The Home Depot (NYSE: HD) NVR Inc (NYSE: NVR) NVIDIA Corporation (NASDAQ: NVDA) Taiwan Semiconductor Manufacturing Company (NYSE: TSM) Lam Research Corporation (NASDAQ: LRCX) Micron Technology (NASDAQ: MU) Samsung Electronics Co- (KRX: 005930) SK Hynix Inc (KRX: 000660) ASML Holding (NASDAQ: ASML) ICICI Bank (NYSE: IBN), (BSE: 532174), (NSE: ICICIBANK) Amazon (NASDAQ: AMZN) MercadoLibre(NASDAQ: MELI) Alibaba Group (NYSE: BABA) Tencent (HKEX: 0700) Before we get into the conversation, please remember this podcast is made for entertainment purposes only and not to be construed as any form of advice. I encourage you to listen to the disclaimer at the end of this ROCast and to keep your feedback coming. You can reach me at mgatti@ywm.com.au.

#26 - Vince Pezzullo | Outlook for Aussie Equities, Gearing & Activist Ownership

Vince Pezzullo is the Head of Australian Equities at Perpetual, to discuss the outlook for Aussie equities, the intricacies of gearing, and the impact of activist ownership investing. Perpetual Group, founded in 1886, is one of Australia's oldest asset management firms. The Australian equities division of the business manages roughly $12 billion. In this episode, we delve into the Australian Share Fund, the Geared Australian Share Fund, which mirrors the previous Aussie Shares fund with a 2-to-1 leverage, and their Strategic Capital Fund, launched towards the end of last year. One of the highlights for me was hearing Vince discuss activist investing, particularly how aligning the right remuneration packages in businesses is one of the simplest ways to create long-lasting positive change and returns for shareholders. Additionally, if you're curious about how the new weight loss drugs like Ozempic, Novo Nordisk, and Eli Lilly may impact Australia's healthcare sector, tune in to hear Vince share his insights on what has happened to companies like ResMed, CSL, and more. Companies Discussed: BlueScope Steel (BSL) Iluka Resources Woolworths Group (WOW.ASX) Flutter Entertainment PLC Goodman Group La Française des Jeux SA Insurance Australia Group (IAG) CSL Limited ResMed (RMD) Novo Nordisk (NVO) Eli Lilly & Company (LLY) Before we get into the conversation, please remember that this podcast is made for entertainment purposes only and should not be construed as any form of advice. I encourage you to listen to the disclaimer at the end of this ROCast and to keep your feedback coming. You can reach me at mgatti@ywm.com.au

#25 - Jason Edwards | Have Your Cake & Eat It Too via Venture Debt

Jason Edwards is the CEO of January Capital, about venture debt and their unique database Alternatives.pe, which is used by 80% of Southeast Asia VC firms like Sequoia, Tiger Global, and more. If you’re familiar with private lending, like many Australians, and you have often wondered how to both generate income from lending to, say, $10 to $15 million high-growth B2B SaaS companies and “ALSO” participate in the potential upside, then I think you’re really going to enjoy Jason breaking down venture debt and their fund's strategy. If you’re not familiar with venture debt, it’s a form of lending to startups, senior secured, earning income from day one, backed by institutional investors with the unique ability to participate in a company’s growth success via warrants. January Capital has a capital call structure and, for Australian investors, the feeder fund has a 2-year lock-up with redemption's quarterly after this period ends. Regarding returns, the fund will be paying a 12% current yield, and then when the warrants kick in, they expect that investors will be getting closer to something like 17 to 19% total return, per annum average, net of fees. What’s a warrant? What’s venture debt, why Singapore, and how does it all work? Well, best join us and let Jason add color to this canvas. Before we get into the conversation, please remember this podcast is made for entertainment purposes only and not to be construed as any form of advice. I encourage you to listen to the disclaimer at the end of this ROCast and to keep your feedback coming. You can reach me at mgatti@ywm.com.au

3 de 6