We're pleased to see our portfolio manager Thomas Rice featured in InvestorDaily for his exceptional track record in identifying COVID winners through strategic global equities investment. Rice was managing Perpetual's Global Innovation Share Fund when he delivered 53 per cent returns through investments in companies like Zoom and Axon Enterprise.
His bottom-up investment strategy demonstrates thorough analysis and long-term value creation. Rice's expertise was particularly evident in his early identification of Zoom's competitive advantages, purchasing shares the day it went public in 2019.
"Zoom was set up so you could send anyone a Zoom link and they could join without signing up for an account. It seems normal now, but it wasn't back then," Rice told InvestorDaily.
His insights into recurring revenue models showcase deep understanding of business fundamentals. Rice's 2017 investment in Axon Enterprise exemplifies this approach, recognising the potential in their police body camera business despite initial losses. He explained the importance of understanding business models beyond surface-level analysis.
"It's important to understand that the business of police body cameras isn't about a one-off sale like GoPro. It's about data management. A police officer wears a body camera, puts it into an Axon Dock at the end of a shift, and the data is automatically uploaded to a cloud platform they run called Evidence.com. It's a high-quality recurring revenue business that will expand the services they offer over time."
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