Inside the Rope with David Clark

Sometimes presents that may be perceived as "boring" can eventuate into the most exciting gifts that you have received. The Magellan Infrastructure Fund invests in listed assets with exposure to sectors such as toll roads, airports, rail and utilities. Gerald describes these assets as highly reliable, predictable and boring. However, Gerald and I discuss how investing in such assets has allowed the fund to return 20% during the last 12 months and generate returns of over 14% p.a. during the last 10 years (as of November 2019). Gerald mentions that the fund is not designed for individuals to get rich quick, but rather to generate wealth with a high degree of confidence. The fund targets long term returns of inflation + 5%, with low downside capture. The Magellan Infrastructure Fund manages around $8.5bn and is invested in listed infrastructure assets around the world.

Kee explains how property assets with yields of 7-9% are being found across the UK as Brexit fears have reduced competition for certain assets. Kee also covers the UK election and what it means for their property market. L1 UK Residential Property Funds focus on assets with purchase prices of £3-10m a bracket that is separate to that of large institutions who typically target assets of greater value. The fund invests in tier one cities outside of London and South-East England where valuations are only now reaching the same levels as '07. Competition in the UK is further reduced as banks are limited in their ability to invest in similar assets, in part due to the EU Mortgage Market Review. Kee mentions that tighter lending controls have meant that 68% of individuals in the UK that are renting don't own a home because they can't afford the deposit.

Are the big Australian banks value traps? As the disparity in valuations between value and growth stocks widen, Rhett and I discuss why. The impact of technological disruption has seen several growth stock multiples stretch well beyond traditional valuation methods, and Rhett believes that there are more rational returns to be found in less favoured companies such as Telstra and Viva Energy. The Pengana Australian Equities Fund is an absolute return focused fund that aims to deliver returns of 6% greater than the risk-free rate throughout the cycle. Since inception in June 2008, the fund has returned 10.23% p.a. as at October 2019.

Equity like returns with debt like risk; Metrics Managing Partner Andrew Lockhart discusses the opportunity created by traditional lenders leaving the Australian market due to increasing levels of regulation. The Metrics Credit Partners Fund offers investors direct exposure to Australia’s bank-dominated mid-market corporate loan market by investing in loans to private corporates, private-equity sponsored, real estate and structured finance borrowers.

With the Regal small-cap fund up over 70% CYTD (as at 30 Sept 2019), Phil and I talk the good, the bad & the ugly of financial markets. Phil remains optimistic that there is plenty of growth left in the market, and in this episode he steps through his rationale underpinning this view.

Investing through the cycle and targeting 10-15% returns net of fees is Alium’s focus, and in this episode Martin explains how Alium is able to accomplish this. The Alium Market Neutral strategy is an alternate strategy that utilizes both long and short positions globally with a thematic based approach. Martin describes how his strategy operates differently to traditional market-neutral strategies that utilise a sector-based approach. From inception in May 2017 through August 2019, the fund has not produced a negative year.

Recently I toured Israel with Koda Partner Will Douglas and Ibex Investors to gain insights into the Ibex Israel investment fund. On the four day tour we visited a range of investee companies and spent time with economists, industry representatives, start-up incubators, academics and other investors in the fund. In this episode, we discuss the Israel tour and the opportunities that Israel presents for investors. Will is an Adviser & Partner based in the Koda Brisbane office.

In what has proven to be a difficult period for Tribeca, Ben and I discuss the reasons for the fund's underperformance and how Tribeca is positioned to perform going forward. Ben has worked in the natural resource sector for over 15 years and founded Tribeca Global Natural Resources in 2015.

Rugby World Cup winning captain and captain of industry David Kirk discusses Bailador, his ASX listed technology investment company.

Lending money to countries such as Zimbabwe requires skill, knowledge, and experience. Stephen discusses how Global Evolution has become a global leader in managing frontier debt with over $9 billion of investors’ money. The frontier market strategy has produced an annualised return of 8.6% since its inception in 2010. The fund identifies opportunistic early-stage macroeconomic and political developments.