Australian Investors Podcast Gary Hui on shorting A2 Milk, why narratives lie & building deep research edge at Geometrica
Dec 9, 2025
Gary Hui, portfolio manager at Geometrica Fund, shares insights from his deep research approach in investing. He argues that narratives often mislead investors, illustrating his point with the case of A2 Milk, where he utilized WeChat data and quantitative methods to identify short opportunities. Gary also critiques the misattribution of ResMed's challenges to market dynamics instead of inventory issues. He emphasizes the importance of alternative data, careful analysis, and rejecting conventional wisdom in seeking asymmetric investment targets.
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From Accounting To J.P. Morgan Training
- Gary started as a chartered accountant then joined J.P. Morgan in 1999 where intensive training shaped his technical skills.
- That experience taught him valuation, finance, and to build process-driven investing.
Valuation Reflects Popularity Not Truth
- Valuation is mostly a popularity proxy rather than intrinsic truth about a company.
- Future earnings drive value but unexpected changes and shifts in multiples create real opportunity.
Find Logic Conflations Behind Moves
- Markets often misattribute the cause of a stock's decline, creating exploitable logic conflations.
- Finding the true causal chain behind price moves reveals mispricings.