InvestSMART Group Limited · ASX:INV
InvestSMART — Nathan Bell Webinar (November 2021)
24 slides from InvestSMART's conference presentation, Nov 18, 2021
Slide 1: How to find value
How to find value NATHAN BELL PORTFOLIO MANAGER
Slide 2: Disclaimer
DISCLAIMER WA R N I N G This publication is general information only, which means it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether a particular recommendation is appropriate for your needs before acting on it, seeking advic
Slide 3: About Us
ABOUT US InvestSMART Group Ltd (ASX:INV), founded in 1999, is a leading Australian digital wealth advisor with more than 32,000 clients and over $1.4bn in assets under advice. It owns Intelligent Investor, Eureka Report and has launched a number of its own funds.
Slide 4: Where do you find value?
W H E R E D O Y O U F I N D VA L U E ? • High quality businesses • High insider-ownership • Long growth runways • A large discount to intrinsic value • Special Situations • New CEO • Re-capitalised • Spin-offs • Hidden assets
Slide 5: High quality businesses
H I G H Q UA L I T Y B U S I N ES S ES • High insider-ownership • Long growth runways a • A large discount to intrinsic value
Slide 6: Peter Lynch quote on corrections
“ Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves. Peter Lynch
Slide 7: Arb Corporation annualised return 18.7%
A R B C O R P O R AT I O N Annualised return = 18.7% $25 $20 $15 $10 $5 $0 2006 2008 2010 2012 2014 2016 2018
Slide 8: Bad headlines and depressed earnings create opportunities
BAD HEADLINES AND DEPRESSED E A R N I N G S C R E AT E O P P O R T U N I T I E S
Slide 9: High insider ownership
HIGH INSIDER OWNERSHIP Founder-led companies vs S&P 500 True even with tech companies excluded Founder-led companies outperform the rest Founder’s Index vs other S&P 500 Based on an analysis of S&P 500 firms in 2014 Source: Bain & Company via Harvard Business Review Source: Consultancy.UK
Slide 10: What happens when you don't have inside ownership?
W H AT H A P P E N S W H E N Y O U D O N ’ T H AV E INSIDE OWNERSHIP?
Slide 11: An opportunity with high insider ownership: Frontier Digital Ventures
AN OPPORTUNITY WITH HIGH INSIDER OWNERSHIP Frontier Digital Ventures ASX:FDV
Slide 12: Frontier Digital Ventures
F R O N T I E R D I G I TA L V E N T U R E S REA Group (ASX:REA) iPropertyGroup (ASX:IPP) • FDV owns a portfolio of stakes in 15 home and car classifieds businesses in emerging markets. Partners with local operators. • Market Cap: $139m ($21m cash; Current expectation of Zameen stake currently value
Slide 13: New CEO: Etsy
NEW CEO Etsy INVESTSMART
Slide 14: New CEO: Etsy
ETSY REUTERS MARKET NEWS — MAY 3, 2017 / 6:49 AM/ A YEAR AGO. E-commerce site Etsy names new CEO as earnings plummet 1 MIN READ wif May2 (Reuters) - Etsy Inc, an e-commerce site for handmade goods, said on Tuesday that Chairman and Chief Executive Chad Dickerson would step down, to be succeeded as C
Slide 15: New CEO: Etsy share price
M ETSY ar $20 $60 $50 $40 $30 $10 $0 20 17 A pr 20 NEW CEO 17 M 20 ay Ju 17 n 20 17 Ju l2 01 A 7 ug 20 17 Se p 20 17 O ct 20 17 N ov 20 17 D ec 20 17 Ja n 20 17 Fe b 20 17 M ar 20 17 A pr 20 17 M 20 ay Ju 17 n 20 17 Ju l2 01 A 7 ug 20 17
Slide 16: Re-capitalisation: Service Stream
R E - C A P I T I L I S AT I O N Service Stream ASX:SSM
Slide 17: New CEO and Re-capitalisation: Service Stream
N E W C E O a n d R E - C A P I T I L I S AT I O N SERVICE STREAM $2.00 $1.60 $1.20 • Rights issue and placement at 21 cents in early 2014 $0.80 • Leigh Mackender is appointed Managing Director on 26 May 2014 $0.40 • Share price increases 10x from the low. $0.00 13 16 15 14 17 14 18 16 15 17 20 20 2
Slide 18: Spinoffs
S P I N O F FS • BHP – South 32 • Wesfarmers • Banks – Wealth management businesses
Slide 19: Spinoffs: excess performance by vintage
S P I N O F FS Excess performance of spinoffs by vintage • Consider parent and spin off • Activists could increase opportunities • Be choosy! Source: factorinvestor.com via Greenwood Investors
Slide 20: Hidden assets: 360 Capital
HIDDEN ASSETS 360 Capital A S X : TG P
Slide 21: Hidden assets: TGP total return
HIDDEN ASSETS 360 Capital TGP’s total return post 360 Capital’s management involvement • Commercial property investment and funds management group • Market Cap: $207m; Trades at NTA; no value for 50% stake in AMF Finance • CEO: Tony Pitt • Major Shareholder: Tony Pitt (27%) Source: TGP 2018 Annual R
Slide 22: Hidden assets: foreign banks increasing exposures
HIDDEN ASSETS 360 Capital Foreign banks increasing exposures, a sign of increased regulatory pressures on local major banks Source: TGP 2018 Annual Results Presentation
Slide 23: Hidden assets: AMF Finance
HIDDEN ASSETS 360 Capital AMF Finance Source: TGP 2018 Annual Results Presentation
Slide 24: Q&A: How to invest
Q&A H O W TO I N V E S T Equity Income Portfolio Equity Growth Portfolio • Buy on the ASX • Professionally Managed Account InvestSMART Australian Equity Income Fund (ASX: INIF) Intelligent Investor Equity Growth Portfolio www.investsmart.com.au/invest-with-us • Professionally Managed Account Intelli
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