Already a subscriber?Blackwattle Investment Partners’ Tim Riordan is such a strong believer in having skin in the game that he left one of the country’s biggest superannuation funds to effectively join a start-up.to join Blackwattle after five years as head of direct equities for the $150 billion super fund. He was responsible for more than $2 billion of those assets.Dominic Lorrimer
“Previously, they had this strategy that they would focus on growing revenue, with no margin. But there’s been a forced change with the advent of higher interest rates and investors not accepting that paradigm of growth at all costs.” The other benefit of mid-caps, he says, is gaining exposure to relatively new businesses emerging from the smaller end of the sharemarket that have been able to mature, but also hunt for companies that had been around for decades but haven’t reached their full growth potential.
Altium is a company that Riordan knows well, and he is “a little bit sad” to see it leave the stock exchange. The board of Altium unanimously endorsed the deal, agreeing to a $68.50-per-share offer. The stock has rocketed 40 per cent this year. On the macroeconomic front, Riordan says it’s fair to assume that interest rates have plateaued, and central banks will soon start cutting rates, which should also encourage more deal-making.