HM1 - Hearts and Minds Investments

[System]

Hearts and Minds Investments Limited is a listed investment company (LIC) which will provide a concentrated portfolio of the highest conviction ideas from leading fund managers and support leading Medical Research Institutes in Australia.

HM1 provides shareholders with the opportunity to invest in a listed investment company with the following two objectives:

Provide a concentrated Portfolio of the highest conviction ideas from leading Fund Managers

The intention of HM1 is to provide shareholders with a compelling and attractive investment proposition by utilizing the highest conviction recommendations of a select group of fund managers in order to maximise shareholder returns over the long term (being five years or more).

Support leading Australian medical research institutes

HM1 seeks to provide financial funding to leading Australian medical research institutes in order to support the development of new medicine and drive a new generation of medical research in Australia. HM1 will forego any investment fees and instead donate a donation amount which will be distributed to the designated charities every six months.

It is anticipated that HM1 will list on the ASX during November 2018.

http://www.heartsandmindsinvestments.com.au

 

[Dona Ferentes]

HM1 is an offshoot from the successful Sohn Hearts and Minds Conference, where investment manager get together in November to pitch their best ideas. The Sohn conference has been running for four years, and attracts a loyal following. As well as the pitches, the conference attracted Luminaries such as Ray Dalio and Howard Marks (who you could be sure had a full agenda elswhere, while in the country).

HM1 is a Listed Investment Company and was IPO'ed a year ago at $2.50 a share. An aspect of the LIC is that administrative work is done pro bono, both the contribution of the ideas and the registry and other back room work. There is a management fee of 1.5%pa based on the NTA, and this flows to medical research institutes; so far $20 million has been gifted. The FUM is now close to $600 million and the one-year return has been 25.6%. Currently the LIC is trading a few cents above its NTA. (But covid-19 at bugger that)

The concentrated portfolio, of between 25-35 stocks, can be both Australian and International assets and comprises the best ideas of both 5 (soon to increase to 6) Core and 13 Conference Fund Managers. Approx 65% of investments are basedon quarterly recommendations of the Core Managers while the other 35% are securities based onthe annual recommendations of the Conference Managers

 

[Dona Ferentes]

HM1 is an offshoot from the successful Sohn Hearts and Minds Conference, where investment manager get together in November to pitch their best ideas.

meeting again ... in Hobart

pity about the last 12 months for investors in the listed fund, which has slid 45 per cent, compared to a 5.3 per cent fall in the local market.

 

[InsvestoBoy]

meeting again ... in Hobart

pity about the last 12 months for investors in the listed fund, which has slid 45 per cent, compared to a 5.3 per cent fall in the local market.

Turns out if you gather all the "smartest" minds in the business in a room their beta is 1 to meme stonks.

 

[Dona Ferentes]

Turns out if you gather all the "smartest" minds in the business in a room their beta is 1 to meme stonks.

yes, but that's all about to change

the latest gabfest has been in Hobart, with David Walsh of MONA lighting up the room, by all accounts. Lots of backslapping among the assembled 600.

Heroic past picks such as Delivery Hero, Megaport and crypto exchange Coinbase have gone, replaced by TransUrban, AMP, Champion Iron, or even stay in cash for a while longer. Theis could well be a Green for Go and put risk back on the table

The LIC set up to hold the sweet selection HM1 continues to do poorly

 

[InsvestoBoy]

yes, but that's all about to change

the latest gabfest has been in Hobart, with David Walsh of MONA lighting up the room, by all accounts. Lots of backslapping among the assembled 600.

Heroic past picks such as Delivery Hero, Megaport and crypto exchange Coinbase have gone, replaced by TransUrban, AMP, Champion Iron, or even stay in cash for a while longer. Theis could well be a Green for Go and put risk back on the table

The LIC set up to hold the sweet selection HM1 continues to do poorly

View attachment 149453

I wasn't really sure how it worked so I looked it up https://www.heartsandmindsinvestments.com.au/site/the-company/investment-strategy

Seems like only 35% of the portfolio is based on the recommendations from the conference and then they rotate that part each conference.

So I guess unless any of the conference recommendations overlap with the rest of the portfolio, or any of the conference recommendations does really well, you'd never see it in the Top 10 Holdings in their monthly updates. Each conference pick would be 3.5% or less weight of the portfolio.

Current Top 10 from the Oct monthly update

Still plenty of heroic picks like Zillow, Block in there. We'll see about the likes of Alphabet and MSFT sooner or later I guess

Currently trading something like 15% below NAV, a decent market implied approximation of manager performance.

 

[Garpal Gumnut]

meeting again ... in Hobart

pity about the last 12 months for investors in the listed fund, which has slid 45 per cent, compared to a 5.3 per cent fall in the local market.


View attachment 146146

Thanks @Dona Ferentes

It makes me very comfortable with my SMSF holdings on the ASX.

gg

 

[Dona Ferentes]

Sohn Hearts & Minds is meeting in Adelaide today. It is now in its ninth year and involves some of the world’s top fund managers presenting their most compelling stock picks for the next 12 months.

• Rikki Bannan of IFM returns after nailing her 2023 pick by tipping ASX-listed biotech Telix, up 150 per cent over the last 12 months.
• Terra Capital’s Jeremy Bond
• Chris Kourtis of Ellerston
• global fundies pitching stocks are Samir Mehta of JO Hambro, Sumit Gautam of Scalar Gauge, Ricky Sandler of Eminence, Beeneet Kothari of Tekne and Jordan Katz of Advent.
• Australians include Vihari Ross of Antipodes, Fleur Wright of Northcape and Alex Pollack of Loftus Peak.
• Other big names include macro man turned crypto king Mike Novogratz, Nick Moakes of Wellcome Trust and Wall Street legend Howard Marks, who will be interviewed by head Chanticleer columnist James Thomson.