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