Three things that got the team talking this week - Firetrail Investments

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Three things that got the team talking this week

October 11, 2024

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1. US dominance

Global equity markets have risen many folds since the global financial crisis (GFC) in 2008-2009, with the FTSE All World returning 216%, or an annualised return equivalent of 7.7% in US dollars. Of this return, the US has contributed around 181% of the total return in US dollar terms.

Source: FTSE Russell (October 2024)

Source: FTSE Russell (October 2024)

2. Are you ready to jump into a driverless car?

Though there are some autonomous vehicles (AV) on the road now (in markets such as San Francisco, Phoenix, Wuhan, and Beijing), the technology has yet to be broadly deployed. There are now signs that AI advances could accelerate the adoption of vehicles that are substantially more autonomous. By 2030, up to 10% of global new car sales could be automation “Level 3” vehicles: self-driving cars that let drivers take their eyes off the road and their hands off the wheel in select situations, such as on a highway in clear weather.

Goldman Sachs estimate that nearly 80% of all car sales in Europe and roughly 65% of all car sales in the US could be advanced AV vehicles by 2040.

Autonomous vehicle penetration forecasts (level 3 and above)

Source: Goldman Sachs Research (October 2024)

3. How much do tennis players make?

The data is a little dated, but in 2021 the average earnings for a male tennis player ranked anywhere from one to one thousand in the world were $185,106.59.

The average is misleading due to extreme values at each end of the pay scale, with world number one Djokovic earning $9,100,547 and world number 1000 Michal Mikula earning $4,273.

The median is a more accurate representation, at $22,362.

The ATP now guarantees minimum income for the top 250-ranked singles players each season, covering any shortfall should their earnings fall below the threshold.
For 2024, the levels are set at $300,000 for the top 100, $150,000 for those ranked 101st to 175th, and $75,000 for those between 176th and 250th in the world.

Source: www.perfect-tennis.com (October 2024)

Disclaimer

This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

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