HM1 – Hearts and Minds Investments

HM1 is an offshoot from the successful Sohn Hearts and Minds Conference, where investment manager get together in November to pitch their best ideas. The Sohn conference has been running for four years, and attracts a loyal following. As well as the pitches, the conference attracted Luminaries such as Ray Dalio and Howard Marks (who you could be sure had a full agenda elswhere, while in the country).

HM1 is a Listed Investment Company and was IPO’ed a year ago at $2.50 a share. An aspect of the LIC is that administrative work is done pro bono, both the contribution of the ideas and the registry and other back room work. There is a management fee of 1.5%pa based on the NTA, and this flows to medical research institutes; so far $20 million has been gifted. The FUM is now close to $600 million and the one-year return has been 25.6%. Currently the LIC is trading a few cents above its NTA. (But covid-19 at bugger that)

The concentrated portfolio, of between 25-35 stocks, can be both Australian and International assets and comprises the best ideas of both 5 (soon to increase to 6) Core and 13 Conference Fund Managers. Approx 65% of investments are basedon quarterly recommendations of the Core Managers while the other 35% are securities based onthe annual recommendations of the Conference Managers