Chris Gosselin from Australian Fund Monitors (https://www.fundmonitors.com/landing.php) interviewed us about the fund and strategy.
0:00 - Introducing Michael Frazis
1:12 - Michael introduces Frazis Capital and describes its core investment requirements (Customer love, explosive growth and market leadership)
2:45 - The opportunity presented by high growth companies with ugly financial statements, professional scepticism and high short interest
4:00 - The best investment opportunities are often in front of your eyes the entire time
4:35 - Michael reiterates the importance of the fund's core investment requirements
6:10 - Unit economics often tell a very different and more valuable story than financial statements (using Xero and Tesla as examples)
7:35 - Frazis Capital's systematic framework
9:30 - Chris asks Michael, "When you don't get it right, how do you manage that?"
12:00 - Chris asks Michael, "Is there a stage at which these companies, which are growing very quickly, become mature?"
12:40 - Michael discusses Adobe and Salesforce as examples of mature software companies
14:50 - The importance of focusing on market leaders, using the example of the BNPL industry
16:10 - MercadoLibre and Sea - true market leaders, which deserve valuation premiums
18:00 - Focusing on $5-20 billion companies growing revenue at 50-100%/annum
18:40 - Chris and Michael discuss the headwinds and opportunities presented by COVID-19
20:10 - Making sure that portfolio holdings are accelerating through the coronavirus period
22:00 - What is the smart move right now? Find companies with pent-up demand
