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1. Pizza party…

The Australian High Conviction Fund initiated a position in Dominos in Q4 2022. We expect Dominos to benefit as budget constrained consumers trade down to its affordable product. We also expect Dominos to take market share given they are best in class operators and therefore better positioned than their competitors to deal with the inflationary challenges facing the sector. What we didn’t expect was one of our analysts to come back from their holiday in Japan most excited about updates on their menu items. It seems Dominos has an extreme customer focus in the country. See descriptions below:

  • The Pizza rice bowl, self-explanatory.

  • Dominos menu supplied on the desk in the hotel room in Tokyo. Now you can have Dominos delivered straight to your hotel room door.

  • The burger pizza – it’s been a big success in Australia and has evidently made its way over to Japan. Let us know if you’ve tried it!

2. The report cards are coming in…

Global reporting season rolls on. And interestingly earnings misses have been resulting in outperformance so far. We also saw a stat from Evans earlier in the week that companies that missed expectations so far this reporting season have underperformed by just 1.7%, which is the least negative reaction over the last eight quarters.

Source: Goldman Sachs: @GavinSBaker

3. The power of optimism…

Who needs to hedge the downside when Powell has learnt to pivot! The cost of downside puts is at a 2 year low, and short interest across stocks and ETFs remains low. Gavin Baker found a good way to summarise the market’s emotions currently.


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

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