Pinnacle Investment Management Group Limited · ASX:PNI
Pinnacle Investment Management — Firetrail Investments — Firetrail Summit July 2025
11 slides from Pinnacle Investment Management's conference presentation, July 2025
Slide 1: Unearthing the best of value and growth
Unearthing the best of value and growth Blake Henricks Portfolio Manager Invest with Conviction July 2025
Slide 2: Important information
Important information This presentation was prepared by Firetrail Investments Pty Limited (ABN 98 622 377 913, AFSL 516821) (Firetrail) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045) and the Firetrail Absolute Return Fund (ARSN 624 135 879) (the Funds)
Slide 3: Firetrail Australian High Conviction Fund
Firetrail Australian High Conviction Fund 1How we manage your money 2 An out of favour high growth opportunity 3 A hidden gem A concentrated portfolio with a proven track record
Slide 4: One interesting thing we found: The US consumer is resilient
One interesting thing we found The US consumer is resilient The Youth are spending up! Monthly total spending by age US Consumer Monthly Spending ex Gas cohort year-on-year growth (%) Stations year-on-year growth (%) 12% 8% 7% 10% 6% 8% 5% 4% 6% 3% 4% 2% 1% 2% 0% 0% Nov-24 Dec-24 Jul-24 Aug-24 Sep-2
Slide 5: How we invest your money
How we invest your money Traditional factors don’t always work Firetrail High Conviction Fund in a nutshell • Concentrated • best ideas • Value and Growth • avoid 8 year growth / value cycles • Actively looking beyond today • market underestimating positive improvement • mispriced companies with lit
Slide 6: COCHLEAR - Out of favour high growth
COCHLEAR - Out of favour high growth The Big Picture Recent news has been negative % of people with severe deafness who receive a cochlear implant Cochlear FY25 earnings per share ($A/share) 90% $7.00 $6.90 80% 80% $6.80 70% $6.60 -12% 60% after 3 downgrades 50% Total = 4.3% $6.40 40% $6.20 30% $6.0
Slide 7: COCHLEAR - What is the market missing?
COCHLEAR - What is the market missing? The new implant is a game-changer Cochlear’s Nexa implant Breakthrough products drive share ResMed Market Share after launch 45% 40% 40% 35% 30% 30% 25% 20% 15% 10% 5% 0% Before (FY14) After (FY16) Game changing new product • 1st chip-enabled CPAP launched 2014
Slide 8: Let’s talk real estate
Let’s talk real estate What is the most valuable part of a real estate agency? The common answer: The real answer: Agents Rent Roll
Slide 9: GEMLIFE – a self-funding rent roll generator
GEMLIFE – a self-funding rent roll generator GemLife Gold Coast • Founder led business • Started 1982, IPO 2025 • Targeting over 50’s living • Simple model • Buy land • Get DA approval • Build 300 homes • Sell the house • Rent the land GemLife grows a rental stream with little capital requirements
Slide 10: GEMLIFE – what makes it unique
GEMLIFE – what makes it unique GemLife do their own building GemLife Home margins over time 60% 50% 40% 30% 20% • Reliable earnings and excellent cashflow 10% 0% FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2026 • Low capital means potential for faster growth ~10k site pipeline • Reasonably priced at
Slide 11: Firetrail Australian High Conviction Fund
Firetrail Australian High Conviction Fund 1 20 years of concentrated investing in value and growth 2 Cochlear – fallen angel with inflection 3 GemLife – a self funding rent book generator A concentrated portfolio with a proven track record