Let's recap

The ninth annual Sohn Hearts & Minds was headlined by legendary Oaktree investor Howard Marks. Famous for his market memos and dry wit, Marks reminded us his advice is “free, and you get what you pay for.” In that spirit, we present this free recap.
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Over 700 investors may have descended on Adelaide for this year’s conference, but the minds of the political and economic experts, and many of the stock pickers, were firmly focused on the other side of the Pacific and what impact - if any - a second Trump presidency may have on the global markets.

From Marks’ perspective, markets seem comfortable with the prospect of another four years of Donald Trump, noting that the forward price to earnings valuation of the Dow Jones has never been higher leading into a new presidential term. Admiral Mike Rogers (Bondi Partners) pointed out the importance of watching what Trump does over what he says, and while Nick Moakes (Wellcome Trust) thinks hard about geopolitics, he reminded us that “ultimately what we are buying are assets, not economies”. Ajay Rajadhyaksha (Barclays) added a cautious note on inflation risks but reassured the room that U.S. checks and balances remain intact.

As much as the room couldn’t get enough of Trump, they were here to get an early look at the high conviction stock picks of some of the best in the industry. Normally a clear theme emerges, but this year the only discernible theme was that every sector has an unloved stock with a clear runway to growth - if only you can see through the noise.

Returning champion Rikki Bannan (IFM Investors) pitched Corporate Travel Management, poised to capitalise on post-COVID business travel with 15% CAGR potential. Vihari Ross (Antipodes Partners) made the case for European plane manufacturer Airbus, set to benefit from billions of future passenger journeys. Jordan Katz (Advent Global) focused on Transdigm, with its lucrative subscription-like model for airplane parts—“a unicorn wrapped in seatbelts,” he said.

Chris Kourtis (Ellerston Capital) turned heads with Perpetual, betting on a rebound from 20-year lows. Sumit Gautam (Scalar Gauge) backed Blackline Systems for its cloud-based solutions, while Jeremy Bond (Terra Capital) went bold with silver producer Coeur Mining. Other picks ranged from Estee Lauder to Eli Lilly and TenCent Music, covering beauty, biotech, and beats.

The conference wasn’t all stocks. A lively Space panel predicted affordable interstellar travel within a decade—SH&M 2034 on the moon, anyone?

In addition to making money for delegates, the reason that the conference exists is to raise money for the medical research organisations that Hearts & Minds supports and nearly $1 million was pledged on the day. A special acknowledgement to Paradice Investment Management, Wilson Asset Management, the Ainsworth Family, Barrenjoey, LGT Crestone, Munro Partners, Cooper Investors, Shaw & Partners, Alceon, Playfair Tan, Tasmea, Arkadia, Niki Scevak, Greg Paramor, Paul Bassat, and the Lew Foundation for their generosity and commitment.

Held alongside the Adelaide 500 and with the Premier declaring the city is “so hot right now,” SH&M delivered another unforgettable experience in Australia’s festival city.