HM1 Weekly Investor Update: 26 October

Hi everyone,
 
Well here we are, nearing the end of October already, with just 60 days left until Christmas, 67 days until 2021, but more importantly only 18 days until the next suite of stock ideas are unveiled at the Sohn Hearts & Minds Investment Leaders Conference!
 
But I’ll get back to that shortly...
 
Performance for the week was pretty flat, with our NTA’s declining just under 1%. The share price remains above $4.00, sitting at $4.10 as I write. We have been closing out some of the conference positions in the past week or so, with managers recommending taking profits with less than 3 weeks left until they must be sold. One of these was our digital marketing cloud-based platform stock, The Trade Desk, which is listed in the US. This has been one of the outstanding stocks for HM1 shareholders, as its share price has rallied almost 150% since Nick Griffin, from Munro Partners pitched it last year. You may recall that Nick pitched Amazon to the audience in 2018, which has also obviously been a fantastic investment, and we feel privileged to have Nick returning next month to give us his latest hidden gem, high conviction investment idea. Bring it on Nick!
 
Last week I did something I’ve never done before, that was so far out of my comfort zone, that I might have been delaying doing it for a little while. I appeared on a podcast! 
 
Bryce Leske and Alec Renehan are two young guys who decided a few years ago that they wanted to learn more about investing. They thought that a clever way to do this would be to chat to people who knew a thing or two about markets and create a podcast to share with other millennial generation investors, first-time retail investors, and anyone else who wanted to listen and learn. And so Equity Mates was born. Fast forward four years, and the guys have now produced 300 episodes, with many notable experts having appeared already, Malcolm Turnbull among them!
 
You can listen to my chat with them right here. We spoke about my first investment (what a disaster!), what I would teach my younger self about investing, my top three books to read (one was written in 1923, and is a must-read for anyone interested in the sharemarket, while another I called "un-put-downable", as it describes the differences in life between the US and the Nordic countries). Obviously, the crux of the podcast was about HM1 though, where I recounted some of the most memorable stock pitches we’ve seen, how the portfolio has performed, who is speaking this year, and a whole lot more. I may be biased, but I reckon it’s worth a listen for you and your children (and your parents!)
 
But wait, there’s more - Nick Griffin, whose amazing stock pick I mentioned above (The Trade Desk: up 150% in a year) will be doing a follow up podcast with the Equity Mates boys and myself this week, which will hopefully be released next week. Nick will have the chance to tell listeners what it’s like to pitch your single best stock idea in front of an audience of up to a thousand eager investors, why he feels he has to get it right, and what it means to be a part of the Hearts and Minds family, helping both shareholders and our beneficiaries.
 
You may have seen we announced last week that Scott Galloway would be our second keynote conference speaker, along with Bill Ackman. Scott is a Professor of digital marketing at NYU Stern School of Business, where he teaches brand management and digital marketing to MBA students. He is a serial entrepreneur, who has founded nine companies, including Red Envelope, which was one of the earliest e-commerce sites. He has also written two fascinating books, "The Algebra of Happiness" and "The Four: The Hidden DNA of Amazon, Apple, Facebook and Google.” 
 
To hear what both Scott and Bill have to say just after the US election will be worth the price of admission alone.
 
It’s not too late to buy a ticket to the virtual conference - you can do it here and please be aware that it is 87.5% tax deductible. The new speakers who will present their highest conviction stock ideas have been screened by our team, and we are confident they will be up to the standard we’ve set in the past. To see all of the speaker bio’s, click here.
 
And to finish this week’s note, last week Paul and I went out to the Paediatric Intensive Care Unit (PICU) at Westmead Children’s Hospital to deliver some good news. While we were there, we were lucky enough to be taken on a tour of the ward, where we saw children as young as four days old, being placed on machines to help their little hearts and lungs deal with surgeries they had endured. It was heartbreaking to see. It makes what we do at Hearts and Minds seem all the more special and indeed relevant, in that we are able to support such a special unit as the PICU. As you know, donations like this one, are made from the fund, in lieu of a management fee that you, the shareholder would normally make. So, thank you, shareholders, for being able to make this happen. 

 

 

Have a good week,

Rory Lucas
Chief Investment Officer
Hearts and Minds Investments Limited

 

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