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

Weekly insights from the Trail

Three things that got the team talking this week

June 3, 2022June 20th, 2022

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1. Lendlease Google Project… It’s BIG!

Last week we shared insights on why Google has partnered with Lendlease on a $15bn USD urban development in California. One thing that gets us excited about the project is the size and scale… It’s BIG! In fact, the Google project will be 10x the size of Barangaroo in Sydney (see image below to put this into perspective). California is just the beginning… As the relationship grows, we expect Google to partner with Lendlease on new development projects around the world…

Source: Google Maps

2. All pain, no gain for Peloton…

Peloton Interactive had its tyres pumped in 2020 as investors overestimated how long work-from-home induced growth would last. It’s been a downhill ride ever since. The stock has fallen over 90% from its highs in December 2020. The pain continues this year… Supply chain issues have driven Peloton’s shipping/storage costs up from US$250 per bike to US$900. Since Peloton includes shipping in the US$1,500-$2,000 price of its bikes, its margins are bearing the full brunt of this cost increase.

Source: Peleton, Firetrail

3. Ransomware attacks on the rise…

Ransomware attackers are getting more sophisticated and more plentiful. According to Fortinet, the number of ransomware attacks increased a phenomenal tenfold in 2021… Ransomware attacks are a risk for some, but an opportunity for others. The Firetrail S3 Global Opportunities Fund holds Tenable, Inc., a ‘Cyber Exposure’ company which helps firms measure and manage their cybersecurity risk. Tenable’s Vulnerability Management sales have grown over 30% p.a. over the last 5 years. Airtight cybersecurity is becoming increasingly valuable as firms move their businesses onto the cloud.

Source: Fortinet

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.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email service@pinnacleinvestment.com

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