Updating Trupanion

Investors in the Elevation Capital Global Shares Fund own a share of Trupanion, a pet insurance provider that offers a monthly subscription eliminating uncertainty around the cost of pet care. The company has grown revenues at +27.14% per annum from 2015-2019 and is well positioned to continue benefiting from the favourable tailwinds in the Petcare Industry.

The growing trend that we have comprehensively covered in the past of “pet-humanisation” and Trupanion’s competitive business model has seen the company experience a rapid multiple expansion since 1 February 2020. From the Elevation Capital Global Shares Fund cost basis, Trupanion has returned +226.26%. We continue to see long-term value in Trupanion, the pet insurance industry in the USA is still considerably under-penetrated. In our opinion, Trupanion offers a best-in-class service to customers which will continue to be reflected via long-term growth in its intrinsic value.

To learn more about Trupanion, read our summary report here.

Richemont - Timeless Luxury

Investors in the Elevation Capital Global Shares Fund own shares in Compagnie Financiere Richemont SA [CFR.SWX], a Switzerland-based luxury goods holding company founded in 1988 by South African businessman Johann Rupert. Richemont’s Maisons encompass several of the most prestigious names in the luxury industry including Cartier, Van Cleef & Arpels, IWC Schaffhausen, Piaget, and Chloe. Richemont specialises in jewellery, watches and writing instruments that represent a long-lasting tradition of style, quality and craftsman ship that must be preserved.

Richemont’s management team have long been committed to sustainable growth, always maintaining conservative debt levels and taking a long-term approach to ensure the company has longevity. We believe that Richemont can leverage its robust financials to weather the current economic downturn, affording the company an advantageous position in comparison to other luxury brands. In our opinion, this longevity, and the immense value of its underlying brands makes Richemont a valuable long-term holding for the Elevation Capital Global Shares Fund.

Learn more about why we believe Richemont represents a compelling long-term investment opportunity by reading our summary report here.

Rakon - a Significantly Undervalued NZX Listed Technology Company

Rakon Limited [RAK.NZ] is a New Zealand based technology company that designs and manufactures high quality frequency control solutions. The Elevation Capital Global Shares Fund has owned shares in Rakon since 3 July 2019. The underlying business is performing well, Rakon has posted positive free cash flow in four of the last five years and with 5G demand ramping up globally the company is well positioned to continue to experience growth.

There are two ways companies return value to shareholders: (1) cash distributions and, (2) share price appreciation. Rakon has not delivered on either of these metrics in recent times. Elevation Capital has called on the Independent Directors to improve shareholder communications and market engagement given the positive outlook for Rakon.

After attending the ASM on 7 August 2020 and delivering this message in person, we are now convinced that the company is listening and the underlying investment thesis and positive outlook is firmly intact. We expect Rakon to add meaningful value to the Elevation Capital Global Shares Fund in the years ahead. 

To read our full report, click here.

Highlighting Trupanion

Elevation Capital Global Shares Fund: Investors in the fund own a share of Trupanion Inc. [TRUP.US], a monthly subscription that eliminates uncertainty around the cost of pet care. Trupanion provides medical insurance for cats and dogs in the US and Canada, where it is on course to become the largest player in the industry. Trupanion’s unique business model and higher relative value proposition renders the company well positioned to seize the opportunity provided by the strong tailwinds in the Petcare Industry.

Learn more about this business and why we think it provides a compelling investment opportunity by reading our Summary Report here.

Introduction to the Petcare Industry

The Petcare Industry is continuing to experience secular growth both in scale and the revenue it generates on a per pet basis. The developing world is spending more on pets than ever before. The industry growth is driven by a growing population, higher rates of pet ownership among younger generations, and the trend of “pet humanisation” - the phenomena of considering pets and their dietary, medical, and other needs, as on par in importance with the human members of a family.

Learn about the Petcare Industry and why we believe our “best friends” provide compelling long-term investment opportunities by reading our summary report on the sector here.

Zooplus, Europe’s Online Pet Store

Elevation Capital Global Shares Fund: Investors in the fund own a share of Zooplus A.G. [ZO1G.DE], the leading online retailer for pet supplies in Europe. The company sells around 8,000 products for the most popular types of pets. The product range includes pet food, accessories, and toys in all price categories. Zooplus customers not only enjoy an extensive product range with fast and free delivery, but also benefit from a variety of interactive content and community offers. Zooplus AG has already successfully launched its business model in 30 European countries. This makes Zooplus the only genuinely pan-European online retailer for pet supplies. Since its initial public offering in 2008, the company's sales have risen from €80million to a total of €1,342million in the 2018 financial year.

Learn more about this business and why we think it provides a compelling investment opportunity by reading our Summary Report here.