Frazis Capital Podcast

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, a Harvard teaching hospital in Boston, and UCLA Medical Center in Los Angeles.

Timestamps

0:05 – Introducing Robert Stretch

0:25 – Robert’s journey studying medicine in the US

3:40 – Findings when working on the MIMIC (Medical Information Mart for Intensive Care) database at MIT University

9:31 – Robert’s move into sleep apnoea

12:23 – What is sleep apnoea?

16:47 – What are the main risk factors for developing sleep apnoea?

17:26 – What is the current standard of care for sleep apnoea?

18:26 – Working in US ICU’s remotely from Sydney

23:11 – The need for remote ICU doctors

26:00 – Robert’s experience treating Covid patients in ICU

31:58 – Why are older people more vulnerable to Covid-19?

33:19 – Assessment of the Australian government’s Covid-19 support and vaccine distribution

40:30 – Outlook on Australian biotech companies

46:52 – What is RNAi technology?

52:40 – Pricing of vaccines and antibiotics globally

59:04 – Link between Alzheimer’s and Gingivitis

0:15 – Introduction to Frazis Capital Partners.

1:45 – Sell-off trends and SPAC’s.

3:57 – Growth stocks outperforming tech indices.

6:45 – Standpoint on growth stocks.

9:18 – Software’s strong run.

11:05 – Multiple contractions and what this means.

13:30 – Teladoc Health.

14:20 – View on Appharvest.

16:45 – Batteries & developments in the lithium space.

18:30 – Thoughts on DermTech.

19:58 – Chinese regulatory risks.

22:29 – What is a stock?

24:15 – State of play for Xero.

25:25 – What do we look for in a company?

27:00 – Are we currently buying?

28:21 – Thoughts on the Redbubble quarterly results.

30:12 – Outlook on Airtasker.

31:00 – Our current best stock play.

32:24 – Perspective on Coinbase.

34:40 – Key takeaways/Summary.

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

Michael Frazis gives an update on SPACs, rising interest rates, tech valuations and what might happen next.

Timestamps

Michael Frazis discusses rising interest rates and growth stocks. 

January 2021 - one of the more amusing weeks of finance. 

0:57 - The short squeeze

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 economy with issues like pollution for electric vehicles and the vast majority of the population will be buying locally made vehicles. Nio is a 100%+ revenue growth company and has proven user base in China 

13.25 - Question: When do we trim? Focus of maintaining diversified portfolio of ultra-high growth companies 

14.25 - Long term goals of the fund 

16.17 - Question: Is there a limit to when printing to support the economy triggers inflation? Austerity weakened the private sector as seen in the UK and saw mass unemployment 17.14 - Comparison with the Australian experience 

18.08 - The Greek experience with austerity, and how growth can be the solution to an economic crisis 20.20 - Worries around debt overhang have been consistently proven wrong for countries like Australia, Japan, UK and USA anyway 

20.50 - Question: How are you investing in the life sciences? 22.23 - Discussion on liquid biopsy and Dermtech's sticker approach to melanoma 24.00 - Question: What do we think about SPACs? 

26.20 - Question: what didn't work in 2020? A few biotechs underperformed, like Avita 

27.40 - Discussion on Moderna now that vaccine is approved 

30.33 - Market outlook: Market is changing with stimulus, vaccines and substantial changes in leadership with low interest rates 

30.45 - At the highs of January 2021 we aim to stay consistent & ensure our portfolio companies are adding users and revenues everyday at the highest possible rates, just as we did in the lows 

33.10 - Question: What do we think of high quality but richly priced companies like Crowdstrike? 

33.23 - 2021 focus on life sciences - the space is independent over the growth space & captures novel explosive growth 

34.10 - Always searching for companies that grow 100% year on year, trading on five-time sales  

34.25 - Why we never bought Spotify 

35.10 - Question: Are we in a tech bubble? 

44.30 - Conclusion: we remain focused on our diversified portfolio of ultra-high growth companies intense customer love, long term

Terry Hau interviewed us for HedgeVista.