Inside the Rope with David Clark

In this episode, David is joined by Koda Capital Chief Economist Brigette Leckie to discuss global economic performance, the impact of artificial intelligence on economies, and the implications of upcoming elections, particularly in the US, for the economy and investment markets. Brigette and David also touch on the current wars and their potential economic impacts. Brigette shares her experience gained across the financial services industry and provides her outlook on asset classes, contrasting her views with the consensus on the street. The episode also covers a range of other topics, including the structural and cyclical aspects of economies, inflation trends, and the influence of geopolitical events on financial markets. Brigette Leckie has worked in financial markets since the early 1990s. Previous roles have included Chief Strategist, Chief Economist and Head of Research at Australian, New Zealand and multinational firms including BNY Mellon, Alliance Bernstein, Perpetual and BNP. She has also worked in New Zealand Treasury and served on numerous public and private sector committees.

Phil King, CIO of Regal Funds, discusses investment strategy focusing on curiosity and listening skills. Talks about Regal's approach to trading, long-term investments, and the success of their small companies fund. Shares vision for Regal as a top firm attracting top talent, and discusses macroeconomic environment, Chinese economy impact, and investment in sectors like resources and battery metals.

In this episode of "Inside the Rope", David interviews Frank Macindoe, advisor and partner at Koda Capital, who manages the Koda Enduring Equities portfolio. This portfolio, focusing on ASX-listed shares, has achieved an impressive compound annual growth rate of over 14.8% over 15 years to November 2023. The discussion revisits the fund's performance, noting a 10% increase in the final quarter of 2023, despite the challenging period discussed in a previous episode six months prior. The conversation also honours the late Charlie Munger, highlighting his profound impact on investment strategies alongside Warren Buffett. Frank shares insights on navigating the current volatile geopolitical landscape, including the uncertain outcomes of the upcoming US and India elections, and how global tensions affect the markets. Frank emphasises the importance of maintaining a long-term investment perspective in the face of short-term market fluctuations. He details the rationale behind portfolio management decisions, focusing on understanding future cash flows and the implications of changing discount rates due to fluctuating interest rates. The discussion highlights the resilience required to adhere to long-term investment philosophies amidst market volatility. Frank also explores potential market influences in 2024, including geopolitical events and economic policies, with Frank and David distinguishing the differences between fundamental changes and temporary market trends in investment decision-making.

In the podcast episode of "Inside the Rope," host David Clark interviews Cal O'Brien, a managing partner at Anchorage Capital Partners. Anchorage is noted for its expertise in mid-market turnaround investments in Australia, with an impressive average internal rate return of return of over 40%. Cal shares his background, detailing his upbringing on a farm and how it shaped his career in law and later, in private equity. He recounts his transition from a successful legal career, where he specialised in mergers and acquisitions, to a focus on private equity. This shift led him to Anchorage, where he played an important role in establishing their first fund and later joined the firm full-time. The episode touches on Anchorage's investment strategy, which primarily involves taking control positions in companies with over $100 million in revenue. These are typically businesses that can benefit significantly from operational improvements, often being non-core units of larger entities. Cal emphasises Anchorage's hands-on approach, including regular operational meetings and a strong emphasis on effective management teams. Cal cites examples of investments, such as the successful turnaround of Affinity Education and the challenges faced with Scotts, a refrigerated logistics company. He also discusses current investments, including a New Zealand in-home care business, a childcare enterprise, and the renowned retailer David Jones, outlining strategies and progress in these cases. Cal concludes by highlighting Anchorage's support for Ability First Australia, a non-profit aiding disability organisations.

Lawyer David Sekel specializing in asset protection and estate planning discusses safeguarding wealth for future generations. Topics include family dynamics in wealth management, documenting family loans, effective estate planning, powers of attorney, and the impact of family law.

This episode of "Inside the Rope" features David Clark interviewing Andrew Rado, the portfolio manager of the Longreach Maris Sustainable Seafood Fund. Rado explains how the fund invests in Individual Transferable Quotas (ITQs) for wild-caught seafood, a system introduced in the early 1980s in Australia. This innovative approach combines ecological sustainability with economic efficiency. The ITQs regulate the total allowable commercial catch, balancing demand growth with a fixed supply, thereby increasing the value of seafood and the underlying assets. The conversation covers the evolution of fishing industry regulations, from uncontrolled fishing to effective management systems. These regulations have shifted from input controls, like limiting fishing days or equipment, to output controls, setting caps on the quantity of fish caught, such as the current quota system. Rado highlights the fund's significant social impact, particularly its initiatives supporting young, regional, and indigenous fishers. These initiatives include helping them acquire or lease quotas, thus ensuring the continued vitality and sustainability of local fishing communities. The fund's investment strategy is backed by the demand for seafood, driven by factors like immigration and changing dietary patterns. Despite challenges like international trade disputes, the fund has demonstrated resilience and adaptability, finding new markets and maintaining returns for investors.

Urs Wietlisbach, co-founder of Partners Group and expert in private equity, shares insights on the evolution of this asset class and its democratization. He emphasizes the importance of liquidity and diversification in private investments. Wietlisbach also discusses innovative impact investments that seek both social good and financial returns. His family's dedication to philanthropy, particularly through the Giving Pledge, adds a heartfelt dimension to their wealth strategy, merging financial success with social responsibility.

In this episode, Alon Greenspan, CEO of Mind Ventures, discusses his fund's focus on mental health solutions. Mind Ventures, touted as the world's first mental health-focused for-profit venture fund, invests in evidence-based startups across various mental health aspects, from clinical illness to wellness. Greenspan discusses the importance of combining impact with economic returns, ensuring that investments not only generate profit but also significantly improve mental health outcomes. Greenspan also shares his background, originally from Israel with a history in technology M&A and venture investing, and his move to Australia. He explains his personal connection to mental health issues, including experiences with family members and friends suffering from mental health disorders. This personal connection inspired his focus on mental health investments. Alon highlights the growing issue of mental health, with statistics showing an alarming increase in mental illness and its economic impact. He points out that by 2030, mental illness is expected to be the leading cause of death. The discussion also touches on how COVID-19 has exacerbated mental health issues, particularly among children and adolescents. Mind Ventures plans to invest in 15-25 companies, with an emphasis on going deep into portfolio companies. Investments will range from digital interventions to pharmaceutical companies innovating in mental health treatment.

In this instalment of Inside the Rope, David welcomes Jason Coggins, previous lead of investment research at Koda Capital. Jason delves into the nuances of building investment portfolios, the dynamics of public and private market investments, as well as the importance of choosing the right investment managers. He underlines the crucial aspect of tailoring portfolios to meet client expectations, ensuring both technical robustness and effective organisational execution. Jason stresses the critical role of client involvement, the wealth of experience, and the synergy between client objectives and manager commitments to their own strategies. Further, he explores the concept of the opportunistic investment segment, which encompasses strategies with a longer time horizon, advocating for a cautious and methodical approach to capital allocation to mitigate the risk associated with timing in investments. This approach also involves avoiding an over-concentration in sectors like commercial real estate, tapping into global partnerships for enriched investment perspectives, and acknowledging the implications of fund size on performance. The conversation also covers the pivotal role of a manager's historical performance and the strategic importance of risk diversification within a portfolio as a means to minimise potential losses and sustain returns.

Matt Rennie, joint Managing Director of Rennie Advisory, discusses the urgency and complexity of achieving net-zero emissions. Topics include rising dominance of electric vehicles, potential pitfalls in renewable investments, innovative technologies in energy transition, and critical role of soil health in carbon sequestration.