INSIGHTS
Equities, Market Capitalisation, P/E Ratios. Invest in the share market without having the foggiest what any of it means.
All them high-finance terms, they may as well be speaking a foreign language, right? Big, complicated words that spell ‘Imafool’.
Well never mind about all that complicated investor talk. Here at Elevation Capital, we make investing in shares easy.
For the past twelve years, we’ve been building a successful investment portfolio called the Elevation Capital Global Shares Fund, designed for ordinary Kiwis like you to get started and participate in the rewarding world of shares. We of course know what those words mean, but we also know that you don’t need to.
The bit we’re sure you’ll find easy to understand is +12.14%*. Yes that’s right, the Elevation Capital Global Shares Fund has been a sound performer for its investors delivering net returns of +12.14% per annum over the last 5 years*.
You don’t need to have thousands to join either. All you need is $100 initial investment and then just $25 a month.
This will get you a portfolio of investments in companies you’ll easily recognise, like Disney, Spotify, Swatch, Airbnb, Visa, Heineken, Estée Lauder and Sony to name just a few.
So get started today. It really is easy.
To apply online or find out more information, visit: globalsharesfund.co.nz
Just another example of independent thinking and disciplined investing from Elevation Capital.
* As at 31 August 2021 and based on a 28% Prescribed Investor Rate (PIR).
Past performance is not an indication of future results.
Elevation Capital Management Limited is the issuer under this offer. A Product Disclosure Statement (PDS) is available at: www.globalsharesfund.co.nz
Craig Stobo Hosts Discussion for CFA featuring The Right Honourable Helen Clarke and Sir Peter Gluckman
In September 2021, Elevation Capital's Chairman Craig Stobo hosted a discussion with The Right Honourable Helen Clarke and Sir Peter Gluckman to discuss the topic "Informed Views for Business on the Efficacy of NZ's Covid-19 Health Response". The discussion includes a review of New Zealand's response to COVID-19 and commenting on of where to go from here.
Apologies to all investors. We should have advertised our Global Shares Fund years ago.
To be fair, we’ve been a bit focused on investing our clients’ money, but the other day when someone said they’d never heard of ‘The Fund’ we thought we can’t be having that, we’d better get some ads out there. So here goes.
Since December 2008, the Elevation Capital Global Shares Fund has been quietly getting on with the business of earning returns for its clients without any fuss.
Managed by Elevation Capital, a local firm respected and awarded for its commitment to independent thinking and disciplined investing, the Global Shares Fund has delivered net returns of +12.14% per annum over the last 5 years*. Short and long-term results are also compelling. If you’ve got a minute, you can see what we’re talking about at: globalsharesfund.co.nz
So if those numbers have you feeling a tiny twinge of FOMO, we reckon you should call these numbers: 0800 353 227 and enquire about investing in the Elevation Capital Global Shares Fund. If you like what you read, please tell your friends, it would save us having to do more ads, we’d appreciate it.
To apply or find out more information, visit: globalsharesfund.co.nz
Just another example of independent thinking and disciplined investing from Elevation Capital.
* As at 31 August 2021 and based on a 28% Prescribed Investor Rate (PIR).
Past performance is not an indication of future results.
Elevation Capital Management Limited is the issuer under this offer. A Product Disclosure Statement (PDS) is available at: www.globalsharesfund.co.nz
Potential Takeover
Australia’s Ampol (owner of Gull) has offered $3.78 per share to acquire an Elevation Capital Global Shares Fund holding - Z Energy. The Fund identified an opportunity to invest in Z Energy on the back of our investment in Refining NZ (Channel Infrastructure).
The takeover offer has not yet been recommended to shareholders as concerns around monopolistic power from the Commerce Commission and valuation need to be finalised. Ampol now has a window of exclusivity to conduct due diligence. Z-Energy’s share price has risen ~20% since the potential acquisition was announced.
If the acquisition finalises, it will be the Elevation Capital Global Shares Fund’s second takeover of the year. We announced in August 2021 that Zooplus, which we held an investment in since 2019, was acquired by U.S. Private Equity firm - Hellman & Friedman. The Fund has a long history of our holdings becoming takeover targets as a key part of our initial valuation framework explicitly focuses on what an experienced industry participant or financial buyer might pay to acquire 100% of a company based on historical transaction multiples.
We have evidence that investing in pharmaceuticals will make you feel better.
Open wide, it’s time for your medicine. All of us at various times in our life have been made well again thanks to the work of talented people at the pharmaceutical companies across the world. The current global pandemic being battled by many of these companies underlines just how important they are in making our daily lives better.
At Elevation Capital, through our Global Shares Fund, we’ve been investing our clients’ money in the pharmaceutical industry over the past twelve years. Upon examination of the charts, you’ll see that the Fund has been very efficacious indeed, delivering net returns of +11.49% per annum over the last 5 years*. A complimentary side effect of this is our investors tell us it makes them feel much, much better.
Of course it’s not just Bayer, Pfizer, Viatris and GlaxoSmithKline that we invest in. The Elevation Capital Global Shares Fund maintains a measured dose of world leading companies such as Alphabet, Intel, Disney and EssilorLuxottica to name a few. We would be happy to prescribe the same medicine for you if we may.
It’s completely affordable from as little as $100 initial investment and then just $25 a month. If you’d like to feel better too, make an appointment and talk to us today on 0800 353 227. It won’t hurt a bit.
To apply or find out more information, visit: globalsharesfund.co.nz
Just another example of independent thinking and disciplined investing from Elevation Capital.
* As at 31 July 2021 and based on a 28% Prescribed Investor Rate (PIR).
Past performance is not an indication of future results.
Elevation Capital Management Limited is the issuer under this offer. A Product Disclosure Statement (PDS) is available at: www.globalsharesfund.co.nz
Investing with us has a curious side effect. You start liking graphs.
Those PowerPoint presentations where the presenter saps everyone’s will to live, with graph after graph after graph? Those little numbers bottom left of the screen, page 11 of 327. Dear God, can this guy not see that everyone’s gone somewhere else in their minds? Please, please can someone get me out of here.
Well, there is an antidote for this.
You see, for the past twelve years, we at Elevation Capital have been building a track record of investment success.
Our Global Shares Fund, designed for people just like yourself, focuses on creating the sort of graphs that you’ll enjoy, by investing in companies like Disney, Sony, Spotify, Swatch, Airbnb, Visa, Heineken, and Estee Lauder, to name just a few.
With this strategy, the Elevation Capital Global Shares Fund has delivered net returns of +11.49% per annum over the last 5 years*. You don’t need to invest thousands of dollars upfront either. All you need to get started is an initial investment of $100 and regular monthly contributions from as little as $25 per month.
To learn more about piquing your interest in graphs, call us on 09 379 6493 or get in touch online.
To apply or find out more information, visit: https://globalsharesfund.co.nz/
Just another example of independent thinking and disciplined investing from Elevation Capital.
*As at 31 July 2021 and based on a 28% Prescribed Investor Rate (PIR).
Past performance is not an indication of future results.
You know you’ve grown up when Dr Martens have moved from your wardrobe to your portfolio.
Back in the day, you were so cool. A young fashion disrupted. Today, you’ve simmer down a fair bit, but you’ve still got that beloved pair of Dr Martens in your wardrobe. Well, perhaps it’s about time you took another look at them and reminded yourself what a good investment they’ve been.
Right now, you can invest in the Elevation Capital Global Shares Fund and start investing in similar iconic brands you’ve loved over many years. We invest in well-known international companies that are part of your everyday life.
Aside from Dr Martens, the fund also holds investments in companies like Swatch, Christian Dior, Spotify and Twitter.
With a net return of +11.49% per annum over the last 5 years* you can get started with an initial investment of just $100 and $25 a month. Now, where’s that 80’s orange Swatch you had?
To apply or find out more information, visit: https://globalsharesfund.co.nz/
Just another example of independent thinking and disciplined investing from Elevation Capital.
*As at 31 July 2021 and based on a 28% Prescribed Investor Rate (PIR).
Past performance is not an indication of future results.
U.S. private equity firm makes US$3.5 billion bet on pets with Zooplus
The Elevation Capital Global Shares Fund has held an investment in online European pet supplies retailer Zooplus since first acquiring shares on 5 August 2019 at Euro 117 per share.
On 13 August 2021, Zooplus announced it had accepted a takeover offer worth approximately Euros 3 billion (US$ 3.5 billion) from U.S. private equity firm Hellman & Friedman this equated to a price of Euro 390 per share - a 40.3% premium to the 12 August 2021 share price of Euro 278 per share.
Elevation Capital published two research reports on Zooplus, one in October 2019 and another in May 2020 focusing on the opportunity of e-commerce pet retail in Europe, likening the company to NYSE listed Chewy and highlighting Zooplus as a potential takeover target. We expected that Zooplus would trade at a slight discount to Chewy (on an Enterprise Value [EV] to Revenue basis of 2.8x), this takeover equates to a 1.5x EV/Revenue multiple which is in line with our forecasts.
The Elevation Capital Global Shares Fund actively manages its positions as detailed in the chart below which illustrates how we seek to add value for our investors when the market presents opportunities to add to positions on market weakness and then lower our cost base on subsequent strength all the while maintaining a core investment holding. Long-term investors in the Fund since we initiated an investment in Zooplus have realised a total return from Zooplus of +155.75% as at 17 August 2021 when we exited our entire investment.
Zooplus Share Price from 01 January 2019 to 17 August 2021
Fund Total Return: +155.75% since initiating the investment until complete exit.
Green circles indicate an Acquisition by the Fund and the Red circles indicate Divestment by the Fund.
The takeover of Zooplus also adds another company to our Takeover Timeline below:
Elevation Capital Takeover Timeline
We expect our portfolio holdings to continue to find favour with acquirers in the future and look forward to updating as and when this occurs.
It’s true, making money is all about who you know.
You wouldn’t invest your money in something you knew nothing about, which is exactly why more and more people are finding comfort in the familiar by investing in the Elevation Capital Global Shares Fund. The Fund specialises in investing in well-known international brands, the very same ones you trust and enjoy every day.
Managed by Elevation Capital, a local firm respected and awarded for their commitment to independent thinking and disciplined investing, they closely manage your investment in well-known and world-famous companies.
Companies like Spotify, Swatch, Airbnb, Visa, Heineken, Estée Lauder, Mastercard, Roblox and L’Oréal, to name a few.
With this investment strategy, the Elevation Capital Global Shares Fund has delivered net returns to investors of +11.49% per annum over the last 5 years*.
If you’d like to find out more, call us on 09 379 6493 or apply online. You can get started for as little as $100 initial investment and just $25 a month and pretty soon the Elevation Capital Global Shares Fund will be another brand you’ll be very happy you got to know.
To apply or find out more information, visit: globalsharesfund.co.nz
Just another example of independent thinking and disciplined investing from Elevation Capital.
* As at 30 June 2021 and based on a 28% Prescribed Investor Rate (PIR).
Past performance is not an indication of future results.
Inflation and Interest Rates
Inflation and interest rates are garnering much attention. This old cartoon shows how little has changed on Wall Street over time.
Let your money travel, even if you can’t.
Remember the overseas business trip? The overseas conference? The OMG that’s the twentieth straight day of rain, let’s go somewhere hot holiday? Yep, we get it, now you’re stuck here on endless zoom meetings from your kitchen table.
Well chin up, just because you can’t travel, your money still can. When you invest in the Elevation Capital Global Shares Fund, your money is free to roam the globe.
The Elevation Capital Global Shares Fund invests in your favourite brands worldwide from beverages to entertainment, beauty to healthcare, technology to infrastructure. Companies you know like Airbnb, Disney, Spotify, Visa, Heineken, Unilever and Fever-Tree.
The fund is managed by Elevation Capital, a local firm respected and awarded for its commitment to independent thinking and disciplined investing. Investors have enjoyed net returns of +11.99% per annum over the last 5 years*.
Get started today and call Elevation Capital on 09 379 6493 and you'll soon be able to picture your money walking up to the front doors of Disney and bold as brass exclaiming, "someday some of this will be mine!"
To apply or find out more information, visit: https://globalsharesfund.co.nz/
Just another example of independent thinking and disciplined investing from Elevation Capital.
* As at 30 June 2021 and based on a 28% Prescribed Investor Rate (PIR)
Past performance is not an indication of future results.
Liberty SiriusXM: Compelling Value
Investors in the Elevation Capital Global Shares Fund own a share of Liberty SiriusXM (NASDAQ:LSXMA), a Liberty Media tracking stock formed in 2016. The stock features ownership of large entertainment companies, including 76% of radio conglomerate SiriusXM, and 33% of Live Nation, an events company they repositioned from The Formula One Group. SiriusXM is a high-quality business with near monopoly-like characteristics, dominating the United States satellite radio industry.
Liberty SiriusXM trades at a ~40% discount to the Net Asset Value (NAV) comprised of mainly SiriusXM stock, since April 2020. We have capitalised on this opportunity to acquire shares for investors in the Elevation Capital Global Shares Fund. Liberty SiriusXM trades at an attractive discount to our sum-of-the-parts valuation range of US$66.90 to US$93.88, offering a potential upside of +66.53% to +132.26% from the Elevation Capital Global Shares Fund’s latest cost basis as at 30 June 2021.
Heineken: Now You Can
Investors in the Elevation Capital Global Shares Fund own a share of Heineken Holding N.V. (ENXTAM:HEIO), the holding company of the world’s most international brewer, Heineken. Heineken are the proud owner and producer of more than 300 brands, including renowned premium market leaders such as Heineken, Tiger, Amstel and Birra Morretti. Over the years they have developed a global reputation for quality, and remain a proactive leader in discussions around responsible drinking and environmental conservation. Heineken have also been an early adopter of market trends such as the premiumisation of their product range, and the introduction of 0.0% alcohol varieties.
The Elevation Capital Global Shares Fund previously owned Heineken Holding N.V. from 2010 to 2016 delivering a net return of +177.22% (+25.32% per annum). The COVID-19 pandemic has hit the beer market particularly hard as consumers have been prevented from attending social gatherings and restaurants - two of the key points of sale for beer consumption. This alignment of negative forces presented the opportunity to acquire Heineken at an attractive discount to our sum-of-the-parts valuation range of £108.14 to £118.13, offering a potential upside of +61.40% to +76.31% from the Elevation Capital Global Shares Fund’s latest cost basis as at 31 May 2021.
March 2021 Global Shares Fund Results
March 2021 was another positive month for the Elevation Capital Global Shares Fund, returning +6.83%.
During the month we witnessed the benefits of remaining disciplined and thinking independently when reviewing investments. In 2020, we published our investment rationale for ViacomCBS and internally reset our intrinsic value targets for Discovery Communications, both of which we first invested in 2014. These companies experienced a rapid share price appreciation in February/March 2021 and reached our intrinsic valuation targets, where we exited these investments. As it turned out, these two companies were significant and highly-leveraged holdings for Archegos Capital Management, a New York-based “family office” (in reality a hedge fund in disguise). In late March 2021, Archegos faced a margin call from its brokers forcing liquidation of these holdings, causing the exponential gains in the ViacomCBS and Discovery Communications stock prices to quickly evaporate.
Investors in the Global Shares Fund were protected from the latter event as we divested these investments when we believed the stocks were trading at/near our intrinsic value targets, before the Archegos margin call. The subsequent sell-off in ViacomCBS and Discovery Communications presented us an opportunity to reacquire an interest in these companies significantly below our intrinsic value calculations once again.
During March 2021, we also realised investments in the following companies: NZX, Starbucks, Goldman Sachs, and TripAdvisor as market optimism continues on account of the global vaccination rollout and has provided investors with renewed confidence in the hardest pandemic-hit sectors.
Elevation Capital will continue to pay attention to market movements and our internal intrinsic value calculations. We are actively managing the Fund’s cash position to ensure we have the flexibility and agility to invest when opportunities present themselves.
What We’re Reading - Easter Weekend Edition
How mRNA Technology Could Change the World
A "beautiful, scientific story" about mRNA and one of last month's best reads. mRNA technology has been utilised in some of the world’s most effective vaccines. Investors in the Global Shares Fund also own shares in Pfizer which incorporated mRNA technology in its COVID-19 vaccine.
Charting the Rise of Supreme, From Cult Skate Shop to Fashion Superpower.
“When you see the lines for Supreme in New York or London,” says Jones, “you see so many different types of people, and they are people you can relate to—they understand high-low, they’re smart, they’re intelligent, and they’re humorous."
Tulip Mania: the Classic Story of a Dutch Financial Bubble is Mostly Wrong
Maybe Tulip Mania wasn't so irrational after all. Anne Goldgar, Professor of Early Modern History at King's College London, explains why.
The Erosion of Deep Literacy
Learn more our modern frustration of being constantly distracted, which gets in the way with our ability to read dutifully, extensively and critically.
What is Archegos and How Did it Rattle the Stock Market?
Last week's stock market storm might be tricky to get your head around. Wall Street Journal helps to break down the financial terminology and the context of the eyebrow-raising fund manager Archegos Capital.
Financial Times - Lex Letter from New York: Archegos, Junior Bankers, and Misplaced Priorities
How do big-name banks end up repeating recently committed mistakes? There might be some relation to the treatment of junior analysts and the financial incentives put in place for senior bankers.