Philosophy
& Practice

During a period of low market volatility, Billabong went into free fall after a series of failed transactions. Recognising the divergence between price and intrinsic value, a parcel was acquired at just 25 cents — well below book value — resulting in more than double the investment in a relatively short period.

At the peak of the financial crisis, TSO was sold down to approximately 10% of its NTA — far below break-up value. Purchasing during peak negative sentiment generated a return in excess of 700% in approximately three years.

Oversold following the administration of ABC Learning, the trust held the underlying childcare properties — which retained their value. Acquired at an average of 24 cents, it now trades above $2.10 with a dividend yield exceeding 5%. A testament to patient, thesis-driven conviction.