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

March 3, 2023March 10th, 2023

Feature Image

1. Bing is back…

The Firetrail team have been testing the limits of search engines and chat bots recently, like ChatGPT and the new Bing. And Bing has bounced to the top! If you are stuck for ideas on what to do this weekend, why not ask Bing? The growth of Bing bodes well for Firetrail S3 Global Opportunities holding, Microsoft.

Source: The Lottery Corporation

Source: Stasta

Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.

2. The retail army…

S3 Global Opportunities Fund holding, Interactive Brokers, came out with solid monthly stats this week, showing the retail army remain strong. They saw account openings up 20.4% in February, maintaining momentum from January, and a long way above guidance. Trades per account also bounced +5% in February, which is typically a MoM decline month. As such, trading revenues continued their march higher reaching a new high in the post meme-stock period.

Source: Interactive Brokers

Source: Vanda Research

Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.

3. The cost of borrowing…

A key theme that emerged out of reporting season was an increased focus on borrowing costs. With interest rates up 3% over the last year in Australia, and nearly 5% in the US, they are set to become a more important line item for analysts.

And it’s been a big deal in property over the last couple of weeks, particularly in the office space. More than 17% of the entire US office supply is currently vacant and an additional 4.3% is available for sublease. Nearly $92 billion in debt for those properties from nonbank lenders comes due this year, and $58 billion will mature in 2024, according to the Mortgage Bankers Association.

Source: JP Morgan

Source: Mortgage Bankers Association

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

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

Whilst Firetrail, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Firetrail, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Firetrail and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Firetrail. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

This may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and Firetrail.