As highlighted in the introduction to this report, the Sohn Hearts & Minds conference was held in Sydney during November. One of the highlights, outside of the substantial funds raised for Australian Medical Research, is the stock tips provided by Australia’s brightest fund managers. In fact, most managers sponsor the conference to the tune of $50,000 to $100,000 solely to have their few minutes on stage. This year’s top picks were as follows:
- Airlie Funds – Mineral Resources – MIN has iron ore and lithium operations rated as some of the best in the world but struggled in recent years. Airlie are betting on their mining services to continue delivering and an improvement in lithium prices to justify restarting the Wodgina project.
- Cota Capital – Smartsheet – SMAR is a cloud based platform used by 90% of the US’ largest 100 companies to assist in planning, capturing, managing, and reporting on work across business units and offices.
- Tribeca Capital – A2 Milk – The firm remains committed to the growth story of A2 Milk and its reliance on the Chinese middle class to continue to stoke demand in an increasing flooded market.
- Regal Funds – Nickel Mines – NIC is a major producer of nickel pig iron based in Indonesia. It has performed poorly in recent times but the team at Regal expect infrastructure spending to see demand for stainless steel benefiting the company.
- Munro Partners – The Trade Desk – One of Wattle’s favourites, Munro, nominated TTD which is disrupting the way media and ads are bought and sold by business. They expect the company to benefit from the streaming wars due to their ability to target ads to different people watching the same program.
- Montaka – Floor & Décor – Montaka have chosen a more defensive business, FND, which is a US based flooring retailer expected to benefit from full employment and a stronger housing market. The company is delivering same store sales growth of 15% per year.
- Cooper Investors – Fortive – FTV was a spin off from industrial company Danaher and is now a technology company seeking to detect leaks in infectious healthcare situations as well as being a manufacturer of electric vehicle charging stations.