Hello all, I recorded the interview above with Rachel Pether from SALT (the alternative investment conference/forum founded by Anthony Scaramucci).
MICAHEL FRAZIS | 4/6/2021
Portfolio Manager, Managing Partner
This Weeks Guest.
Robert Stretch, MD
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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 discusses Adobe and Salesforce as examples of mature software companies
14:50 – The importance of focusing on market leaders, using the example of the BNPL industry
16:10 – MercadoLibre and Sea – true market leaders, which deserve valuation premiums
18:00 – Focusing on $5-20 billion companies growing revenue at 50-100%/annum
18:40 – Chris and Michael discuss the headwinds and opportunities presented by COVID-19
20:10 – Making sure that portfolio holdings are accelerating through the coronavirus period
22:00 – What is the smart move right now? Find companies with pent-up demand
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