This energy company hasn’t seen conditions this good in 25 years
In sports, players deemed to be "all rounders" don't usually dominate headlines and highlight reels. Yet, over the course of their careers, their flexibility and consistent performance can prove invaluable. The same can be said of investing. You have growth managers, value managers and everything in between. When market conditions are favourable, they're on. But when markets favour another style, they take a back seat. Sometimes for a decade or longer. Today’s guest is Blake Henricks, portfolio manager at Firetrail Investments, a high conviction manager of Aussie and global equities. Firetrail live by the motto “every company has a price”. But don’t let that fool you into thinking they're are a value-only only manager. Theirs is a style agnostic approach, which gives them the flexibility to play at every point in the cycle. In today’s episode, Blake discusses Firetrail's approach to investing, the health of Aussie balance sheets, what we can expect from earnings season, what leads the market to misprice a stock (and some examples), and the implications for the resources sector of being in a buy versus build phase. Note: This interview was recorded on June 27, 2023. Timestamps 0:00 - START1:20 - Today's market2:12 - Conflicting data points3:20 - Earnings season will be tough, but not for every company5:10 - Beachside mansions vs outback shacks10:30 - Finding market misreads12:15 - The benefits of being style-agnostic16:30 - Jack of all trades, master of none?18:30 - Firetrail's portfolio22:30 - Is energy still the play?23:40 - Buy vs build30:00 - Don't board the AI hype train33:00 - Clipped wings and big gains36:00 - A franchise built for success