In this episode of The Australian Investors Podcast, Yarra Capital’s Dion Hershan joins Owen Rask to share the story of Yarra, make the case for getting active exposure to Australia’s mid caps, and profiles some household names, including ResMed (ASX: RMD), NextDC Ltd (ASX: NXT) and Carsales.com Ltd (ASX: CAR).
Dion Hershan podcast talking points
Dion, what was the most recent investment you personally made?
What was the first? (And how did it go)
Dion, can you share a bit about your background and what led you to a career in finance and investment management?
Who do you think you have learned the most from in your journey?
Can you explain your investment philosophy and how it aligns with the objectives of the Yarra Ex-20 Australian Equities Fund?
Why does the Yarra Ex-20 Fund specifically exclude the top 20 ASX-listed shares? What specific factors make that a more compelling opportunity than the entire, say, AX 200 or 300?
What advantages do you see in focusing on companies outside the top 20? Are there general sector, theme or ‘types’ of businesses that you access which change the portfolio mix versus the enter ASX 200?
Are there any common misconceptions about investing in companies outside the top 20 that you would like to address?
I’d like to focus on three structurally growing stocks, one at a time with you. But first, is finding a structural theme a prerequisite for entry into the fund, and if so, why?
ResMed Inc (ASX: RMD)
ResMed is well-known for its products in sleep apnea and respiratory care. What do you see as the main drivers of structural growth for ResMed in the coming years?
No conversation about RMD is complete without GLP-1s. How much of an impact are these having, and how would you know if management’s comments about them working together with CPAP… are wrong?
Carsales.com Ltd (ASX: CAR)
Carsales.com has established itself as a leading online automotive marketplace. What structural growth trends do you believe will benefit carsales.com in the future?
How is carsales.com leveraging data and technology to maintain its competitive edge and drive growth? Do you worry about platforms like Facebook marketplace?
NEXTDC Ltd (ASX: NXT)
NEXTDC operates data centers across Australia. What are the key structural growth factors driving demand for data centers, and how is NEXTDC positioned to capitalize on these trends?
With the increasing importance of digital infrastructure, what strategic initiatives is NEXTDC implementing to ensure sustainable growth, capturing value, and not just investing aggressively and turning into a low margin REIT of the cloud?
How do you see the ASX’s investment landscape evolving in the next 5-10 years, especially for funds like the Yarra Ex-20?
Final question, if you could go back in time and tell your younger self one thing about finance, money or investing, what would it be?
About Dion Hershan
Dion is Executive Chairman and Head of Australian Equities at Yarra Capital. He leads the Australian Equities team. Prior to transitioning to Yarra Capital Management, Dion was the Head of Australian Equities of Goldman Sachs Asset Management, a position he held since July 2007.
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