Meet the Managers - August 2018 Stephen Bennie, Partner - March 2021 Stephen Bennie

Meet the Managers – August 2018
         Stephen Bennie, Partner

                         March 2021
                     Stephen Bennie

Disclaimer

•   This information is intended solely for the use of wholesale investors, as defined in the Financial Markets Conduct Act 2013
    (New Zealand) and wholesale clients as defined in the Financial Advisers Act 2008. It is not for general public distribution. By
    receiving this information you represent that you are a wholesale client.
•   Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well
    as rise and you may not get back the amount originally invested. This information does not purport to be a comprehensive
    statement or description of any markets or securities referred to within. Tax assumptions and reliefs depend upon an
    investor’s particular circumstances and may change if those circumstances or the law change. Prospective investors should
    not rely on this information and should make their own enquiries and evaluations they consider to be appropriate to
    determine the suitability of any investment (including regarding their investment objectives, financial situation, and partic ular
    needs) and should seek all necessary financial, legal, tax and investment advice. If you invest through a third party provider
    you are advised to consult them directly as charges, performance and terms and conditions may differ materially.
•   This information is not intended to be nor should it be construed as advice. This information is not a recommendation to sell
    or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. Any investment
    application will be made solely on the basis of the information contained in the relevant fund's offer document (including all
    relevant covering documents), which may contain investment restrictions. This information is intended as a summary only
    and (if applicable) potential investors must read the relevant fund's offer document before investing.
•   This information has been prepared using information from a variety of sources. The information is believed by Castle Point
    to be correct but no warranty is made with respect to its completeness or accuracy. All opinions and estimates in this
    information are subject to change without notice. Castle Point is not under any obligation to update this information to the
    extent that it is or becomes out of date or incorrect. This information is confidential and must not be made available,
    published or distributed to any third party without the prior written consent of Castle Point.

Castle Point Founders

               Richard Stubbs        Stephen Bennie        Jamie Young           Gordon Sims

               Portfolio Manager &   Portfolio Manager &   Portfolio Manager &
  Role                                                                           Analyst
               Analyst               Analyst               Analyst

               M.Com (Hons 1st)      B.Com (Hons)          M.Math (1st Oxford)   M.Finance
  Education
               B.Sci                 CFA                   CFA                   CFA

  Industry
               27 years              27 years              13 years              10 years
  Experience

                                                                                               3

Castle Point Founders

                Richard Stubbs        Stephen Bennie        Jamie Young           Gordon Sims

                Portfolio Manager &   Portfolio Manager &   Portfolio Manager &
   Role                                                                           Analyst
                Analyst               Analyst               Analyst

                M.Com (Hons 1st)      B.Com (Hons)          M.Math (1st Oxford)   M.Finance
   Education
                B.Sci                 CFA                   CFA                   CFA

   Industry
                27 years              27 years              13 years              10 years
   Experience

“All good investing is value investing. It’s just that some people look for value in strong
               companies and some look for value in weak companies.”
                                   Charlie Munger, 2021
                                                                                                4

Castle Point – what makes us different?

            •   Boutique

            •   Aligned

            •   Focused

             • Long Term Investors

                                          5

Castle Point – what makes us different?

            •   Boutique

            •   Aligned

            •   Focused

             • Long Term Investors

             • Morningstar Fund Manager of the Year
               – Domestic Equities

                                                      6

Ranger, A22, was unbeaten for 30 years

Ranger Fund

Current Ranger Holdings

                          9

Looking for value in strong companies

    •   We look for 2 types of Quality investments
         - Moats:            mature with barriers to entry
         - Mid-cap Growers: earlier stage with significant upside

    •   Mid-cap Growers can perform very strongly, in the last 12 mths
         - Redbubble       +423%
         - Sezzle          +381%
         - Kogan.com       +232%

    •   To get the most from Mid-cap Growers
         - Don’t sell too early
         - But valuation still matters

                                                                    10

Let Your Winners Run – A2 Milk Company

                                Source: Bloomberg
                                                    11

Valuation Always Matters – A2 Milk Company

                                 Source: Bloomberg
                                                     12

Sometimes Valuation Matters less – AfterPay

                                  Source: Bloomberg
                                                      13

For most of 2020 Growth smashed Value

                   Source: Bloomberg, NASDAQ vs Russell 2000 Value
                                                                     14

Possible sign of “Peak Growth”

                                 15

Summary

   •   We look for value in strong and weak companies

       • What we call Value and Quality

   •    Strong companies can generate very high returns

       • So don’t sell them too early

   •   However, valuation always matters

       • Which means an exit can be required

       • Otherwise, great gains can evaporate

                                                          16

Email: Stephen.bennie@castlepointfunds.com
           Mobile: +64 27 675 9995
           Phone: +64 9 300 6060
       PO Box 105889, Auckland 1143
          www.castlepointfunds.com