Frazis Capital Podcast

Timestamps 0:15 Introduction to our strategy 2:55 How a company can lose money and still create value 4:38 Avoiding ‘deep value’ traps 5:30 Update on 2021 fund performance 6:50 How we’re investing in China 9:00 Update on FUTU’s Q2 results and why we bought more 12:18 Recently approved antibodies for COVID-19 – cause for optimism? 16:23 Update on Cettire’s FY21 results 18:03 How we evaluate business ‘quality’ 19:00 Update on Camplify’s FY21 results 21:18 Question: thoughts on Digital Turbine 22:39 Question: thoughts on the recent Square and Afterpay deal

Michael Frazis gives an update

Michael Frazis gives an update. 

Michael Frazis describes his investment company’s strategy that involves a 30-40 year view, not panicking and diverting the approach during dips and rallies. Evaluating growth stocks involves identifying customer love for a product or service which acts a key indicator of explosive growth potential. This approach is utilized in picking winners in industries like the ‘buy now, pay later’ space. Frazis explains how vaccine development is a long process involving extensive trials and how the emergency approval of Moderna’s vaccine allowed the company to prove the mRNA concept, providing the company a significant boost.     TIMESTAMPS  0:00 - Intro and background  2:39 - Founding his company at 29 and investing strategy  11:38 - Evaluating polarizing stocks like Tesla  15:08 - Investing psychology  18:45 - Processing investment information  23:17 - Investing in industry creators  25:31 - Moderna and life sciences investments  31:43 - Dogecoin case study 

Michael Frazis attempts to understand the FDA's decision to approve Biogen's aducanumab for Alzheimer's and the possible ramifications. 

Timestamps  ·      0:32 – Our fast-growing portfolio companies ·      2:21 - Frazis life sciences strategy update ·      5:18 – RNAi Biology ·      7:15 – Alnylam: RNAi clinical development pipeline and recent execution ·      8:16 – Timing and valuation in life sciences ·      9:26 – What do we think of CRISPER? ·      11:03 – Companies targeting sickle cell disease ·      11:56 – Companies targeting beta-thalassemia ·      12:53 – Platform technologies: Moderna ·      15:12 – Platform technologies: Ultragenyx ·      16:30 – Special focus: Alzheimer’s ·      18:50 –Alzheimer’s APOE4 ·      23:50 – Could Alzheimer’s be ca

Michael Frazis discusses the growth sell-off in equities as of 15 May 2021.

Dr. Robert Stretch is a specialist in Pulmonary, Critical Care & Sleep Medicine. After graduating from Yale School of Medicine in 2014, he completed subspecialty training at BIDMC in Boston and UCLA Medical Center in Los Angeles. He is board-certified by the American Board of Internal Medicine (ABIM).

This is the audio from an investment update Michael Frazis gave on 23 April 2021. 

Brian Hartzer joins us to talk about his new book 'The Leadership Star', available from Amazon.  Brian was CEO of Westpac from 2014-2020. For those who don't know Westpac is Australia's second largest bank with over $800 billion of assets.  Brian discusses his 'Leadership Star' framework and pivotal moments in Australia's banking history. Brian also shares his views on cryptocurrency, neobanks, alternative lenders, the Buy-Now-Pay-Later movement, and the future of financial technology more broadly.   Timestamps 00:05 – Introducing Brian 03:15 – Brian's new book: ‘The Leadership Star: A Practical Guide to Building Engagement’ 06:00 – Shifting from management consulting to running ANZ’s credit card business 08:25 – Brian’s perspective on the evolution of credit cards in Australia 10:25 – The five c’s of leadership: care, context, clarity, clearing the way and celebrate 11:05 – Why the phrase ‘I’m just a teller’ is a sign of bad management 13:00 – Why cleaners are the most important workers at D

Michael Frazis gives an update on SPACs, rising interest rates, tech valuations and what might happen next. Timestamps  1:35 - Quick review of 2021   2:30 - Thoughts on Cathie Wood and ARK  3:59 - Expansions and contractions in software multiples  7:40 - Snowflake   8:47 - SPACs: why we like them and why they're dangerous (hint: the same reason) 12:02 - Why we hope SPACs encourage leading tech firms to list sooner 14:21 - Dodgy forecasts 16:51 - Why we rule out most SPACs in the fund 18:00 - Navigating rising interest rates  22:33 - The recent sell-off 24:32 - How we look at market rotations 26:46 - Coupang IPO

January 2021 - one of the more amusing weeks of finance.  0:57 - The short squeeze 2:31 - The reality of Robinhood's 'free' trades 5:08 - The hidden consequences of Hedge Fund strategy 6:51 - How useful is management access? 9:56 - The gamma squeeze 12:15 - How this forced people to rethink how they discuss finance? 13:39 - Is the squeeze squoze? 14:37 - Timing and recovery 15:40 - Our strategy 17:24 - An important dynamic of short interest 19:43 - The true signal of growth 20:32 - How fund managers missed a multidecade trend? 23:00 - A changing guard in allocation decisions

1.40 - Quick review of 2020  2.35 - How to survive huge market swings like March 2020 and 2008-2009  3.45 - Discussion on support mechanisms in place in equity markets (central banks, fiscal stimulus, actions by management teams, etc)  5.45 - Current investment strategy is to stay invested & make sure we are constantly holding winners  7.35 - Sound fundamental reasons why companies with intense customer love, explosive growth, and market leadership perform so well  8.15 - Our companies are investing heavily. When revenue comes in they open new offices, hire marketing staff and etc which promises a greater return on investment. Many categorise these investments as costs, which gives the opposite (incorrect) answer  10.17 - Investment in tech and the "companies of the future" requires long term investment with value creation over 5 - 10 years  11.50 - Question: Have you invested in Nio? Nio capitalises on the necessity of an electric China. There is demand in the Chinese e

Terry Hau interviewed us for HedgeVista.

Jackie Vullinghs @ Airtree 0:11 - Introducing Jackie 0:54 - University in Australia vs the UK 3:08 - Interviewing at Oxford and Cambridge 3:56 - Approach to VC interviews with company founders 5:55 - Jackie discusses AirTree's key portfolio focus (digital health, fintech, consumer) 6:48 - Companies are staying private for longer, is that good or bad? 8:38 - How sustainable are the accelerations of digital health and ecommerce? 9:57 - Low relative penetration of ecommerce in Australia 11:25 - Equity derivatives in London 13:39 - Jackie's shift to start-up, Listable, Kalo 14:50 - August tech runup & option trading 20:46 - Alex Danco: are founders allowed to lie when selling a vision? 21:58 - Short reports and long-term growth of heavily shorted companies 24:27 - Interviews are a valid test for start-up hopefuls 26:14 - Creative arts and consumer tools to monetise creative pursuits 27:58 - Online writing & Jackie's substack (https://jax.substack.com/) 31:00 - As a collective, do retail investors make m

Jarred Shein joins us to talk digital health. Jarred has invested in digital health at MH Carnegie and Qure, an Israeli based VC fund.  0:20 - Introducing Jarred 1:00 - Jarred's education and background.  1:45 - Jarred's studies of nanotechnology, specifically biochemistry  2:30 - Jarred's thesis on biosensor devices and how it relates to Startrek 3:55 - End of university job with Macromatix, completely unrelated to biochemistry 5:10 - The early opportunity to pick up distressed medical device assets 6:00 - Australia's strong position in the world and relatively painless COVID-19 experience make it a great place for global healthcare 8:10 - Australia's unfortunate lack of a biochemistry talent pool 9:30 - Australia's amazing history of medical device companies, including Cochlear and Resmed 10:30 - The opportunity to invest in the digital health space in Australia 11:40 - Deep dive into Resmed (RMD:ASX) and its successful pivot to health data revenue 14:40 - The benefits of living and doing bus

Sam Rich joins us to talk security, Crowdstrike, travel names, and how we're positioning the portfolio.

We discuss the current landscape and a couple of choice earnings reports.  0:20 – Introducing Joel Tomaino 1:10 – The structural shift to e-commerce 1:30 – Government stimulus and the diverse impacts of the current economic crisis 2:30 – How long will stimulus benefits and exacerbated e-commerce growth rates last 3:30 – Australian e-commerce plays, including Redbubble (ASX:RBL) 4:40 – E-commerce growth in mature markets compared to developing markets 5:00 – The opportunity for MercadoLibre (NASDAQ:MELI) in South America 6:20 – The opportunity for Sea (NYSE:SE) in South-East Asia 6:55 – Disney’s powerful platform and the success story of Disney Plus 8:25 – Is there pent up demand in travel? Will travel companies have their best years yet? 9:50 – Broader rotations in the market. Re-rates in growth stocks 10:45 – Frazis Capital’s auto plays (Carvana – NYSE:CVNA, Tesla – NASDAQ:TSLA) 12:45 – Changing attitudes to public transport because of COVID-19 13:40 – Where does the common cold come from? 14:10 – Marke

Chris Gosselin from Australian Fund Monitors (https://www.fundmonitors.com/landing.php) interviewed us about the fund and strategy.  0:00 - Introducing Michael Frazis 1:12 - Michael introduces Frazis Capital and describes its core investment requirements (Customer love, explosive growth and market leadership) 2:45 - The opportunity presented by high growth companies with ugly financial statements, professional scepticism and high short interest 4:00 - The best investment opportunities are often in front of your eyes the entire time 4:35 - Michael reiterates the importance of the fund's core investment requirements 6:10 - Unit economics often tell a very different and more valuable story than financial statements (using Xero and Tesla as examples) 7:35 - Frazis Capital's systematic framework 9:30 - Chris asks Michael, "When you don't get it right, how do you manage that?" 12:00 - Chris asks Michael, "Is there a stage at which these companies, which are growing very quickly, become mature?" 12:40 - Michael

Companies with brilliant products and broad customer support are faring significantly better than mature incumbents.  One of the fund's newest holdings satisfies our three core criteria: Exponential growth, products that customers truly love, genuine market leadership.