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Reposting from HC ASX
07/01/14
TitusPullo
Post #: 29171
Glyco I thought this Rod Drury retweet was interesting
http://brontecapital.blogspot.com.au/2014/01/xero-and-precious-petals-of-new-zealand.html?m=1
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7-Jan-14
Thanks Titus
read the tweet, and one of the interesting comments:
January 7, 2014
XRO is the greatest company Aust fundies have never heard of.
This largely reflects a laziness amongst the funds management community to be proactive.
[Apologies to the few that do go above and beyond but there is only a handful of you].
In fact, most have never heard of Peter Thiel either. It's a shame as he is one of the greatest value creators in the last 30 years. Consider that some of the companies he either founded or seeded include PayPal (bought by eBay for US$1.5bn), Facebook (US$140bn market cap), LinkedIn (US$24bn market cap), Palantir (US$8bn market cap), Stripe (~US$300m valuation), Xero (A$4bn market cap), etc...
Locally, while fundies busily debate WES v WOW or DJS v MYR, they are missing the point that the game has shifted. In retail for example, drop shipping, 3D printing, 3 hr fulfilment, augmented reality, embedded payment systems pose a greater threat to retailers like DJS and their 25 year old beige PoS terminals than weather, purple jackets or Myer's Jennifer Hawkins parading at Spring Carnival.
Australian and NZ fund managers have missed the Xero opportunity. US investors will not do the same. Luckily, there is a pipeline of amazing up and coming companies set to emerge in in both here and in NZ.
It will be interesting to see which fundies are incentivised to do the work.
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Titus
here is another one from tweedy,
I googled it to make sure it's real, and found this.
Aussie hedge fund manager raves about Xero's potential
By Tamsyn Parker
5:30 AM Wednesday Jan 8, 2014
An Australian hedge fund manager has raved about the potential for accountancy software company Xero and accused New Zealand fund managers of being "precious petals" for wanting the stock removed from the sharemarket's NZX 50 index.
Writing in his popular blog on Monday, Bronte Capital's John Hempton said he first heard about Xero from a top US technology executive and bought a small parcel of shares.
He next heard of it from a woman linked with the Government's Superannuation Fund who was lamenting the performance of its Kiwi fund managers for not investing in Xero.
Hempton said he was then approached by several Kiwi fund managers who wanted him to short sell the stock - an typical tool used by hedge fund managers who bet on a stock going down.
But he said none of the fund managers had used the product or talked to anyone who had. Hempton, whose firm does use Xero, said he felt the product was "life-changing good".
The stock, which was the best performer on the NZX last year, rising by more than 300 per cent during the year, has caused some angst for local fund managers as very few hold it.
Hempton said Xero's continued performance had put local managers on the spot. "Their underperformance has gone from notable to embarrassing."
There has been talk in the industry that some have lobbied to get Xero taken out of the NZX 50 index - a benchmark used by many fund managers to gauge their performance.
Hempton said he understood the problem but disagreed.
"I am not going to cede this argument to the [underperforming] petals of New Zealand funds management. Indeed I want to argue the opposite."
http://brontecapital.blogspot.co.nz/2014/01/xero-and-precious-petals-of-new-zealand.html
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11182682
