On Talk Ya Book today, former AFL great, turned Cerutty Macro Fund founder Chris Judd welcomes guest Andrew Brown from East 72 Holdings to discuss the advantages of investing in dynasties.
East 72 runs the East 72 Dynasty Trust, which invests in companies that have a controlling shareholder – which tends to be a family.
“We have found over time that those companies tend to outperform the wider market,” Mr Brown said.
“They do so because they have fantastic discipline, they don’t usually make core acquisitions – a lot of managerially-run companies make acquisitions for reasons the management think are strategic, but turn out not to be.
“They’re using very good capital managers.”
Mr Brown talks Chris Judd through numerous examples globally.
He discusses French company Bolloré, which makes up 13% of the East 72 Dynasty Trust portfolio.
202 year-old Bolloré
Bolloré was family-founded more than 200 years ago and has a significant interest in Universal Music Group, Vivendi media company, and agricultural assets including the palm oil and rubber company Socfin.
The company is on the Euronext exchange in Paris, but the Bolloré family maintains majority control.
Talk Ya Book was created by Chris Judd in 2019 as a show where fund managers could share their highest conviction investment idea and showcase their investment framework to the public.
In 2023, Chris joined the people he interviews in the world of funds management by creating the Cerutty Macro Fund. Chris is the founder and portfolio manager of the fund which looks to invest in long term, secular, macro trends.
Disclaimer: Juddcorp Pty Ltd ACN 635 629 631 is a corporate authorised representative (CAR) (CAR Number 1300536) of Boutique Capital Pty Ltd ACN 621 697 621 AFSL 508011.
The material provided in this article is for information only and should not be treated as investment advice.
Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions.
For full disclaimer information, please click here.