A dinner meeting with Financial Capital Specialist: Daniel Radzyminski
Tuesday March 7, 2023 was a dinner meeting - more relaxed and more enjoyable meeting compared to having dinner and the meeting separately. Most present commented how enjoyable it was to have more quality time to socialise as well as conduct Rotary business.
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| A relaxed dinner meeting was appreciated by all who attended. |
Our guest speaker was Gabriel Radzyminski, Founder of Sandon Capital, and CIO & Portfolio manager of the company.
Gabriel has a BA(Hons) and MCom from the University of New South Wales and has over 25 years’ experience in the Financial Industry.Sandon Capital manages 3 fund structures:
- · Sandon Capital Activist Fund (SCAF) $A 45M – an unlisted wholesale investor trust
- · Sandon Capital Investments Ltd (ASX: SNC) $A 138M - LIC
- · Sandon Capital Offshores Master/Feeder Fund $A 4M – for Offshore investors Incorp in Cayman Islands
Gabriel explained “In my early career, I identified that my investment outcomes may have been improved if I tried to influence the company to do things differently. As a result, I started Sandon Capital, the first activitist funds management business in Australia.”
Daniel explained that their approach is different to the US where corporate raiders buy a company and strip it of its assets – activist funds management set out to convince the Board and key/major shareholders that a different strategy will improve performance and increase shareholder value and returns. This seeking positive change may involve taking steps to engineer the changes if the Board resist or reject the strategy, especially without producing evidence to the contrary.
Daniel explained that activism is fundamentally the exercise of shareholder rights and well-enshrined in Australia (Corporations Act 2001.). The key tenet is that shareholders (owing .5% or 100 members) can affect the composition of a public company board and can direct directors to do certain things. For example, propose resolutions to be considered at a general meeting, including the appointment or removal of directors or require that a general meeting be held to consider resolutions.
“Shareholder activism will generally be decided by the ‘court of shareholder opinion’, either informally or formally.
Sandon Capital’s investment philosophy:
· - We are value investors, who use active engagement to grow, release or preserve value in our investments.
· - We target a return of 15%p.a. (before fees) for each of our investments. i.e., a doubling over 5 years.
· - Our Positions are concentrated with the top 10 investments comprising 50-70% of the portfolio.
· - Our focus is predominately on small to mid-cap companies.
Deep fundamental research underpins our investments.
· Our investments are formed though deep fundamental research.
· We seek investments where we can have influence.
· We view risk as the permanent loss of capital, not share price volatility.
· We see ourselves as fractional owners of our investments and take a long-term view of their potential.
· We have a long-established track record of outperformance, with a stable investor base that allows us to play the long game.
Daniel then outlined model of the techniques they use and pointed out that it isn’t a one fits all but rather is adapted depending on the situation.
His used the picture below to describe the process more fully:
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| The activism technique |
Several case studies were presented including a2b (the old Cabcharge), Iluka and the demerger of Deterra. Daniel said that few competitors conduct a strategy similar to that of Sandon; despite the Australian market being very conducive to shareholder activism.
The evolving environmental factors will put stronger focus on stakeholder activism, but it currently isn’t the case.
M & A activity is likely to remain high – shareholders should therefore fight to maximise takeover terms.
Change + Accountability + Volatility = Opportunity.
The meeting was most impressed by the presentation and thanked Daniel for his excellent presentation.
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| Daniel and President Rick |
FORWARD PLANNING
March 12th, 2023 (Tuesday)Assistance at Flower Power Barbeque for their Gala Day Terrey Hills
Conference Rotary District 9685 March 17-19th, 2023 (Friday – Sunday.)
Rotary District 9685 Conference.
This year's conference will be in Cowra NSW.
Book early to avoid disappointment.
Formal Meeting March 21st, 2023 (Tuesday)
Balgowlah Rotary Club Meeting
Balgowlah RSL Wine Room from 7pm and via Zoom
Speaker - Tony Butera from the Upper Northern Beaches club presenting on the very successful membership growth strategies that he has implemented at the club.
Event March 25th & March 26th 2023 (Sat & Sun)
Stocklands Mall Balgowlah
9 am and 3pm each day
Collection to support ShelterBox for Ukraine, Turkey & Syria
Formal Meeting April 4th, 2023 (Tuesday)
Balgowlah Rotary Club Meeting
Balgowlah RSL Wine Room from 7pm and via Zoom
Dinner available in Bistro from 6 pm
Formal Meeting April 18th, 2023 (Tuesday)
Balgowlah Rotary Club Meeting
Balgowlah RSL Wine Room from 7pm and via Zoom
Dinner available in Bistro from 6 pm
Vocational & Community Awards May 2nd, 2023. (Tuesday)
Event
Balgowlah RSL Wine Room - details to be confirmed.
Formal Meeting May 16th, 2023. (Tueasday)
Balgowlah Rotary Club Meeting
Balgowlah RSL Wine Room from 7pm and via Zoom
Dinner available in Bistro from 6 pm
Rotary International Convention May 27-31st 2023. (Tuesday)
Rotary International Convention in Melbourne.
Meet Rotarians form all over the world.
This is where the Rotary world comes together to exchange ideas, share project successes, and have fun!
Save the date.
Formal Meeting June 6th, 2023. (Tuesday)
Balgowlah Rotary Club Meeting
Balgowlah RSL Wine Room from 7pm and via Zoom
Dinner available in Bistro from 6 pm
Changeover June 20th, 2023. (Tuesday)
Balgowlah RSL Wine Room - details to be confirmed.
On Finance:
Borrow money from pessimists,
they don’t expect it back.
Living on earth
may be expensive,
but it includes
an annual free trip
around the sun.
Nothing is foolproof
to a talented fool.
An oil sheik
says in a gallery:
I really admire Picasso.
There is nobody
who was able to sell oil
so expensive.
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