Why the Judo Float Tempted This Fundie to Return to the IPO Market


Probably most of our portfolio!

MedAdvisor is a Melbourne-based medical technology company that doesn’t appear to be very well known in the markets, although it has a good reach in the population both here in Australia and in the United States.

MedAdvisor said it was on track to generate $ 55 million to $ 57 million in revenue in fiscal 2022, up from $ 40 million. It has generated operating losses by investing in its offering and expanding geographically, but gross margins are strong at 55% and facilitate operating leverage as revenue grows.

It has a market capitalization of less than $ 120 million and a stock ledger led by strategic investors and founders. It has not yet been the subject of research coverage from major brokers and deserves to be better known!

What small cap IPOs are you into or like the look of?

We haven’t invested in an IPO for some time but participated in the offering for the neobank Judo which is a small cap but not that small. Too many entrepreneurs turn to financial services and think they can disrupt them by acquiring customers digitally, not realizing that they are still in the realm of capital and need an edge on the market. cost of financing, risk assessment and loan pricing. Judo appears to have the right skills and is becoming profitable this year, based on its prospectus forecast.

What drove your 60% year-over-year return?

The returns for this period were built on a large basis with around 70 percent of our positions generating positive returns in the 12 months through September 30. The top sizzle included Geo, a listing on the New Zealand Exchange, unlisted digital diagnostics firm Ellume, and a few trade-in deals at attractive prices.

Geo Limited, a company listed in New Zealand but with a Sydney-based management team, reported around 140 percent. One of the first things that got me to look at Geo was the involvement of Webjet President Roger Sharp. I first met Roger when I was Financial analysis journalist, in 2005, I think, and I admired the way he and his team actively engage with business and work towards a strategic outcome – Roger was the first person I heard use the phrase ” private equity in public markets ”.

We reassessed our stake in Brisbane-based private digital diagnostics firm Ellume after securing a $ 231 million (roughly $ 305 million) contract with the U.S. Department of Defense for its COVID-19 rapid test.

Strategic buyers rushed to take two more stakes – traffic monitoring firm Redflex and IT services firm Empired – at significant bonuses. This highlights another argument that I think weighs in favor of small businesses – if they’re good companies and the market doesn’t re-value them, there’s every chance a larger strategic buyer will recognize the value. and flies away.

How did you go from journalist to fund manager?

There is a significant overlap between my journalism and investing experience. Both careers allow you to be a lifelong student. There is always something more to learn. You never know enough. Journalism has given me the go-ahead to essentially ask anything of anyone and that kind of contact and questioning remains at the heart of what I do – even though it’s been mostly on Zoom and Teams lately. time.

The challenge of transitioning was more to be convinced that others would see you belonged to you, which probably required me to undertake more in-depth studies and obtain industry-specific credentials.

TV shows, podcasts, or books that you enjoyed?

I read King of the capital, a biography of Stephen Schwarzman of Blackstone that was recently recommended to me by my business partner, Paul Dwyer.

There is a long list of podcasts that I listen to. In the investment world, I enjoy the jokes of the Intelligent Investor research team. Tony Martin’s Sizzletown and various Wil Anderson podcasts are good for a laugh. I love my basketball and I get a fix by streaming Rogue Bugs.

Morning wars is the TV show of the moment in our household, but I also sneak in the new version of Isaac Asimov Foundation series – which I found in my parents’ library as a kid and started reading before I really understood all the words.

What are your interests and hobbies outside of work?

Trying to play basketball and coach my daughters’ teams. When we step into the field, it’s also a lot of fun having kids who love the game and are excited for their dad to call the substitutes (except when they get themselves replaced).

I also have to slip into the Melbourne Football Club. Having lived a lifetime waiting for their former glory to be restored, the only downside to the 2021 AFL Grand Final was that the victory came at the expense of the Western Bulldogs, the team that my wife and stepmother- family support with passion.

Which restaurant will you be frequenting in Melbourne after the lockdown ends?

It’s been too long since I last had the Kenzan Gozen lunchbox at Kenzan Japanese Restaurant in Collins Place.

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