Elevation Capital Global Shares Fund: Investors in the Fund own a share of Flughafen Zurich AG, the owner and operator of the largest international airport in Switzerland which serviced over 31 million passengers in 2018. Population growth, economic development, the increasing internationalisation of business, along with our modern lifestyles, are all driving demand for global mobility by air. Due to this market tailwind the airport has been experiencing high demand and capacity constraints at peak times for many years now, which we find is a good problem to have. Read about Flughafen Zurich and why we established a position in the company in our monthly mailer (released 06 September 2019) here.
Elevation Capital Global Shares Fund: Investors in the Fund own a share of The Walt Disney Company, a global mass-media and entertainment powerhouse with strong brand equity and wide familiarity among consumers. Disney recently unveiled Disney+, its upcoming direct-to-consumer streaming service soon to be home to content stemming from powerhouse Disney brands such as Marvel, Star Wars, Pixar, National Geographic, and Fox. Disney is expecting to have between 60 million and 90 million subscribers by fiscal year end of 2024. Read more about The Walt Disney Company in our monthly mailer (released 28 August 2019) here and our Investment Summary here.
CBS Corporation and Viacom Inc. have announced they will combine in an all-stock merger to create ViacomCBS, a global producer and distributor of premium content. The Elevation Capital Global Shares Fund owns shares in both Viacom and CBS. The two companies combined spent more than US$13billion on content creation in the last 12 months. The combined entity will be the third largest content spender after Netflix and Disney (the latter of which the Fund also owns shares in).
In a world where “content is still king” we believe this merger will create significant value for shareholders by bringing together the most-watched US broadcast TV channel with the owner of the Paramount Pictures film studio and a portfolio of cable channels.
Elevation Capital’s - Christopher Swasbrook presented to the University of Auckland Investment Club sharing some of the lessons he has learnt since founding Elevation Capital using real-life examples. We were pleased to see an encouraging turnout of students eager to learn about investing and look forward to engaging with the University in the future.
We are pleased to announce that the Elevation Capital Value Fund has changed its name to the Elevation Capital Global Shares Fund.
The name change better reflects what the Fund undertakes — global investment in shares of companies around the world. There are no other changes to the Fund and no change to the investment strategy.
You may locate updated documents and learn more about the Global Shares Fund by viewing the new fund website here.
Elevation Capital Value Fund: Investors in the Fund own a share of Molson Coors Brewing Company, the fifth largest brewer in the world by volume. We have previously held a position in Molson Coors from 2011 to 2015 which generated an annualised return of +29.8% over a span of 4.7 years. Stagnating beer consumption in developed markets, coupled with the debt taken on by Molson Coors to finance a transformational acquisition in 2016, have caused a sell-off in 2018 and 2019 which presented us an opportunity to re-invest in the company. Learn more about Molson Coors and why we have invested in this business again by reading our Investment Summary and Full Presentation available here.
Elevation Capital Value Fund: AbbVie announced it was acquiring Allergan, at a +45% premium to the closing price on 24 June 2019. This announcement adds to a history of takeovers in the Fund since its inception. Allergan was one of the largest positions in the Fund which seeks to acquire companies trading below their intrinsic value and that are out of favour or focus with many investors. Read more about the most recent takeover Elevation Capital has benefited from in our monthly mailer (released 7 July 2019) here.
Elevation Capital Value Fund: Aston Martin Lagonda Global Holdings PLC is a British independent manufacturer of luxury sports cars and grand tourers. Famous for its association with James Bond, the company’s vehicles are sold in over 50 countries on six continents. Investors in the Fund own a share of this historic vehicle manufacturer since May 2019. Read about Aston Martin Lagonda and why we established a position in the company in our monthly mailer (released 15 June 2019) here.
Elevation Capital Value Fund: Investors in the Fund own a share of 15-acres in one of the most valuable locations in the world. Brexit fears and current negative sentiments towards investment in the UK have provided us with an opportunity to re-purchase a stake in Shaftesbury PLC; a holder of valuable real-estate concentrated in London's West End. Read our Investment Summary here.
Elevation Capital Value Fund: Avengers Endgame has broken the world record for the highest opening weekend gross at over USD $1.233 billion. Investors in the Fund own a share of The Walt Disney Company, the blockbuster powerhouse responsible for this production. Read more about the Fund’s position in Disney in our monthly mailer (released 13 May 2019) here.
Elevation Capital Value Fund: Investors in the Fund own a share of Richemont SA, a Switzerland-based luxury goods holding company with a wide range of strong brands. Through its various luxury brands Richemont produces and sells jewelry, watches, leather goods, pens, firearms, clothing, and accessories. Richemont has created a short cinematic epic focusing on its history, its values and inspirations, its artistic and universal scope. View this and read more about the Fund’s position in Richemont in our Monthly Mailer (released 11 April 2019) here.
Commerce and Consumer Affairs Minister Kris Faafoi confirmed Mark Todd as the new chairman of the Financial Markets Authority (FMA) and Chris Swasbrook, managing director of Elevation Capital, as an associate member.
Read more about the recent announcement here.
Elevation Capital Value Fund: Last month we highlighted our position in the American retailer L Brands. This month Barington Capital Group LP, a shareholder of L Brands, is recommending a break-up of the company to crystallise value for shareholders. Read Barington Capital’s letter in our monthly mailer (released 14 March 2019) here.
Mitch Harris catches up with Christopher Swasbrook to talk about the latest business news.
Nestle's relationship with L'Oreal has lasted 40 years - why do these two companies work so well together?
US President Donald Trump wants to place tariffs on aluminium and steel imports, following up on his 2016 Election promise to raise job numbers for the working class.
China and South Korea are considering filing a complaint with the World Trade Organization if the United States puts a tariff on US steel.
Iranians have taken to the streets in protest regarding their country's banking system, which had led to a warning from the IMF (International Monetary Fund).
The Museum of Modern Art in New York has purchased an historic piece by NZ artist Michael Stevenson, the MONIAC Machine, which is a reproduction of the first machine built by Bill Phillips in 1949 - which is on display at the Reserve Bank Museum in Wellington.
Elevation Capital Value Fund: Investors in the Fund own a share of L Brands, an American fashion retailer whose flagship brands include Victoria’s Secret and Bath & Body Works. L Brands posted USD $13.237 billion in revenue in 2018, and was listed as #231 in the 2018 Fortune 500 list of the largest US companies by revenue. Read more about L Brands in our monthly mailer (released 15 February 2019) here.
Elevation Capital’s Chris Swasbrook has recently given an extensive presentation on Molson Coors Brewing Company and why we believe the business presents a sound investment opportunity. Stagnating beer consumption in developed markets, coupled with the debt taken on by Molson Coors to finance a transformational acquisition in 2016, have caused a sell-off in 2018 and 2019 which presented us an opportunity to re-invest in the company. We have made the presentation available below for all those interested in learning about Molson Coors and understanding how we approach investment.
Elevation Capital Value Fund: Spotify is the world’s largest music streaming service, with over 87 million subscribers in 78 markets, with Apple and Amazon in distant second and third. The Fund has held a position in Spoify since November 2018 after the company announced a USD $1 billion share buy-back while having no debt. Read more about the Fund’s position in Spotify in our Monthly Mailer (released 12 January 2019) here.
Elevation Capital Value Fund: Viacom Inc is an American media conglomerate which owns Paramount Studios. While all the focus has been on the rise of Netflix, much less attention has been given to who produces the most popular content which drives traffic to the streaming platform. Paramount Studios produced 13 Reasons Why, the most popular show on Netflix in 2018. Read more about Viacom in our monthly mailer (released 11 December 2018) here.
Mitch Harris catches up with Christopher Swasbrook to talk about the latest business news.
Mediaworks NZ have announced a merger with Australian-based outdoor advertising company QMS. Why is the billboard medium currently so popular?
How is the radio business currently performing in New Zealand?
Stockmarkets worldwide are very volatile at the moment, mainly due to US President Donald Trump's trade talks.
Is Sydney heading towards a major housing crisis? How is Australia's economy looking at the moment?
Why do some countries rely so much on China to get their economy going?
A text question from Cliff to Chris Swasbrook - what do you think of Synlait milk?
Simon calls in to ask Chris a question regarding currencies, and why they increase and decrease so rapidly.
The debt-laden Kapiti Coast District Council has announced an interesting way at looking to reduce their $149million debt - by borrowing and investing money to try and turn their fortunes around. A brave move, but will it work?