It is rare for a person to spend the first half of their working life in the public service and then pivot to build a multi-billion dollar financial business. Making the story even more remarkable is that this person grew up in regional Queensland - where financial products are hardly the main course of the local economy.

Ian Macoun, the Managing Director and Founder of Pinnacle Investment Management (ASX: PNI) was born in Rockhampton - a city best known for its cattle production. He left town to work for the Queensland Treasury before being poached as a 33-year-old to run the newly constructed Queensland Investment Corporation (QIC).

It was here that he was introduced to the world of investing. With QIC up and running, Macoun headed to Sydney, joining the private sector. A stint at Westpac opened his eyes to the opportunity in funds management and in 2000, he struck out with Mike Crivelli forming Perennial Funds Management.

It wasn't long though, and Macoun was thinking of an alternative funds management model. Taking minority ownerships in multiple managers, providing the onerous back office functions and accessing the key ingredient for any fund manager - funds.

He discovered this opportunity at stockbroker Wilsons Advisory. Macoun teamed up with Steve Wilson to change his fledgling Hyperion Funds Management arm into a multi-manager model. This was the birth of Pinnacle Investment Management.

Today, Pinnacle has been spun out of Wilson's and has 16 affiliates with a staggering $110 billion of total funds under management. It is growing rapidly and Macoun believes $200 billion is not out of the question.

In this episode of Sucess and More Interesting Stuff, Macoun opens up about his early years and upbringing, shares how he came up with the Pinnacle model and outlines his plans for the future.

Note: For disclosure purposes, the funds associated with Matthew Kidman own shares in Pinnacle Investment Management.

https://www.livewiremarkets.com/wires/no-shortcuts-how-ian-macoun-built-a-100-billion-funds-management-behemoth/

Traditionally, on the show, we talk to people involved in some shape or form with the share market. Today, we are excitedly going off-piste and delving into the unlisted world in one of Australia's outstanding success stories.

In 2008, Lina Calabria and two partners decided to start nine separate businesses as consultants. They had plenty of bright ideas and thought that creating a portfolio of companies, while unorthodox, was a low-risk path to success.

Within a few years, they selected Bellroy, an accessories business that specialises in male wallets, as the pick of the bunch. From humble beginnings, Bellroy, named after combining Bell's Beach and Fitzroy, has grown into a global brand with more than $130 million in sales.

Bellroy sells in dozens of countries and has created its own category called Carry. In other words, they design products you carry around, such as slim wallets, backpacks, work bags, duffel bags, totes, passport holders, and phone cases. It's niche but nicely profitable.

Today, Calabria sees a great opportunity to expand Bellroy in both products and countries, and she believes doubling and possibly tripling the business is a realistic goal.

Click on the player below to hear how Calabria and the team at Bellroy created their own category and navigated the trails of COVID-19 to build a business making a name on the global stage.

Stockbroking is a dangerous game. Investors depend on your advice, but the smallest slip-up can see the relationship turn nasty. As a result, most brokers tend to be as conservative as possible; not Hugh Robertson.

Robertson a 40-year veteran of the stockbroking scene in Melbourne, thrives at the risk end of the curve, specialising in micro and small cap stocks. He works like a gold prospector out in the field with his metal detector looking for the next big discovery.

His list of wins includes Monadelphous (ASX: MND), Service Stream (ASX: SSM), Bellamy’s (ASX: BAL), Hub24 (ASX: HUB), Afterpay and PSC Insurance (ASX: PSIN). He found most of those companies well before they'd been researched by the investment community and, in some cases, even before they listed on the share market.

Robertson has a unique style. He does not rely on numbers to make his decisions. To make matters harder, he has always found reading difficult. Instead, following his natural instincts, he garners information by getting to know people.

His conversations are endless and his intuition for what might work is uncanny. Most investors would've run into Robertson on Collins Street, with a cigarette in one hand and his mobile phone in the other, on the scent of the next big thing.

That doesn't mean he gets all his stock calls right – far from it. Like anyone dealing in small companies, there are always disappointments. His troubled children include Envirosuite (ASX: EVS) and Maggie Beer (ASX: MBH), but the ledger sits firmly in the positive.

Interestingly, Robertson is comfortable sitting on the boards of the companies he backs. Some people in the investment community would describe this as unorthodox, but Robertson likes to make sure he knows the people running the companies he's recommending to his clients. And if the company heads down the wrong path, he's prepared to make the changes required to right the ship.

His other great love is the land. Like most Collins Street farmers, it has been a rocky road. Early setbacks, though, have subsequently led to some prize properties in rural Victoria and probably the best garden in the state.

In this episode of Success and More Interesting Stuff, I speak with Hugh about his path to stockbroking, his passion for prospecting and some of the incredible stories he has brought to the market. Hugh also shares a few of the emerging companies catching his eye right now.

Richard White always wanted to be a rockstar. He was still young when it dawned upon him that it might be more profitable and realistic to become a tech titan instead.

Sounds simple enough, but the journey has taken many twists and turns. Over 40 odd years, White thought life was perfect, hanging out in a rock band and rubbing shoulders with the likes of ACDC and The Angels. Unfortunately, he was going broke.

A problem solver, he pivoted and thought repairing guitars for established rock stars was a way to make an interesting living. The business was a resounding success, but it wasn't perfect. It couldn't be scaled. And another salient lesson was learned.

Nexy, a lighting business was built and sold, and then a stint in the computer hardware distribution game rounded out some much-needed business skills.

In between ventures, White took on some consultancy work. Just by chance, some of his clients were in the freight forwarding game and White, ever alert, identified things could be done a lot better.

So he got to work again and started writing software. Even though he had little practical training, he had twigged the entire freight forwarding industry needed a hand, and he took his products and started selling them more broadly. It is rare that one individual can write the software and then sell it. That was way back in the late 1980s.

During the 1990s, his business became the platform for many major transport companies. Not satisfied, White decided to disrupt his own business. In the early 2000s, he rebuilt his product suite before forging into North America and Europe with a name changed to WiseTech.

The company followed its customers and spread its tentacles around the globe. In 2016, White decided to list on the ASX. He thought publicly traded shares would give him the currency he needed to buy the missing bits to cement a global empire.

And he was right. Close to 50 acquisitions later, WiseTech owns the space. The share price has risen a staggering 26 times from $3.35 to $90. Today WiseTech is valued at $30 billion and is the largest software company listed on the ASX.

According to White, the music is still playing. And WiseTech has a few hit songs to knock out yet.

Note: This podcast was recorded on Wednesday 24 April 2024.

Timecodes:

• 0:00 - Intro
• 2:29 - Richard's favourite musicians
• 4:27 - Richard's on his enduring love for music
• 6:46 - The influence of Richard's upbringing on his career
• 11:17 - The importance of being able to put ideas into practice
• 13:58 - How Richard taught himself how to build hardware
• 16:01 - On sales (and lessons learnt from his previous businesses)
• 17:18 - Why cash is king
• 19:36 - The importance of persistence
• 21:59 - How Richard identified a problem he could solve in freight forwarding
• 26:14 - Why good sales is actually marketing
• 27:42 - The beginnings of WiseTech
• 30:38 - On the importance of education and how it helped grow WiseTech
• 32:46 - Taking WiseTech global
• 34:35 - External investment in the company and an IPO
• 40:16 - On signing DHL pre-IPO
• 41:37 - Dealing with volatility: commentary on the 2019 short attack and early COVID-19 struggles
• 44:45 - WiseTech has acquired 49 companies since listing
• 45:48 - Why people are a business's most important intellectual property
• 49:13 - Educating the next generation (and why "STEM" isn't working)
• 52:08 - The DNA of WiseTech Global today...
• 53:09 - ... And what could disrupt that
• 55:38 - Richard on his succession/retirement and legacy

A revolution has taken place in share investing since the turn of the century. American firms have led the charge with the likes of Vanguard and Blackrock taking passive investing around the globe.

Disenchantment with active fund managers has seen funds flow into the passive sector, accelerated by the emergence of exchange traded funds, or simply ETF’s.

In Australia, the revolution arrived late. Active managers held sway for many years before eventually the dam wall broke. The American behemoths came hard, but they didn’t have it their own way.

Aussie startup Betashares grew out of the GFC and took up the fight. Cobbled together by Alex Vynokur, an immigrant from the former Soviet Union, it wasn’t long before Betashares captured the attention of market participants around the country.

15 years on and Betashares has more than 90 ETF’s, $37 billion assets under management and 150 employees. It is the second largest ETF provider in the Aussie market and in 2023 managed to rank number one for inflows with 37 per cent market share.

As a 16-year-old Vynokur and his family left the Ukraine as the walls of the former Soviet Union came crumbling down. Alex had no English and had to start from scratch. He caught on quickly and in a few short years was studying Law at UNSW.

A brief stint working as a lawyer was followed by a job at finance house Pengana with Malcolm Turnbull and Russell Pillemer. He deduced that not all active managers were able to beat the market. Around the same time, he latched onto the emergence of ETFs. Mortgaging his house and taking time for a fact-finding tour of the US saw him kick off Betashares.

In this episode of Success and More Interesting Stuff, Alex discusses his view on the future of both passive and active investment styles, the incredible growth of Betashares and his passion for making an impact on war-stricken Ukraine.

The company’s land rent model is spreading across Victoria at an ever-increasing rate. To date, more than 30 villages within driving distance of Melbourne have been built or are in the planning stage. In total, more than 5,700 homeowners have been accommodated with many more to come.

Lifestyle Communities started life modestly. At the helm was property veteran James Kelly ably assisted by his partners Bruce Carter and Dael Perlov. The company debuted on the ASX four years later, quietly backdooring into a listed cash box. Over the next 17 years, only the insiders and some unsuspecting investors have enjoyed the stunning 2,500% return. Today the company has a market value of $1.7 billion.

Today, Kelly, at 64 years old, is a prime candidate to be a Lifestyle Communities customer. I get the feeling though that he is still happy to keep the accelerator to the floor.

I first met James not long after the company listed on the ASX in 2006. He has always been an engaging, upbeat individual, defying the typecast property developer image. In this podcast, he takes investors through the journey, and shares what keeps him inspired after 21 years in the business.

Note: This episode was recorded on Wednesday 28 February 2024.

Timecodes:

0:00 - Intro

2:33 - From an idea in a cafe to a $1.8 billion company - coming up with the Lifestyle Communities concept

5:36 - The transformation of the retirement industry

7:17 - Early financing struggles and selling the concept

11:28 - The intrinsic desire to be part of a community

13:03 - James Kelly's upbringing, family life and first foray into property

16:03 - The lasting impact and legacy of property investment and development

17:14 - The key to successful property development

19:04 - Experiences that created the leader James Kelly is today

25:52 - The importance of pricing risk as a busy owner

29:22 - The Lifestyle Communities model and its first development

34:09 - Backdoor listing on the ASX

37:18 - Lifestyle's most recent capital raise and plans for the future

40:38 - The transformation of Lifestyle's share register

41:56 - The opportunity in Generation X

45:56 - Why leaders/managers should focus on being kind

47:46 - How to solve Australia's housing crisis

50:32 - Why James Kelly won't be retiring any time soon

Time stamps

• 0:00 - Introduction
• 3:10 - Early life and leaving Estonia
• 8:15 - Developing an interest in economics
• 9:49 - An opportunity with Ord Minett and the XYZ method of research
• 15:13 - A move to London on the back of booming markets
• 20:03 - A call with Chris Corrigan and bringing active management to Australia
• 25:05 - Good performance leads to rapid growth Keating
• 30:41 - Kerr Neilson and Jillian Broadbent join BT as it becomes a powerhouse
• 34:15 - 1987 and the era of corporate excess
• 38:54 - The strategies Olev Rahn used to protect BT from the crash of 1987
• 42:00 - The signs of exuberance prior to the 1987 crash
• 47:39 - A golden era for Bankers Trust
• 50:00 - Olev Rahn’s views on markets in 2024