TDM Growth Partners

The Sohn Hearts & Minds Conference has had a huge impact, with now over $72m having been donated across medical research in Australia. With TDM Growth Partners as core manager of HM1, the TDM Foundation has been able to support some incredible causes: WEHI (Walter and Eliza Hall Institute of Medical Research) with Professor Matthew Call & Associate Professor Melissa Call; Baker Heart and Diabetes Institute with Associate Professor Neale Cohen; Pain Foundation Limited with Michael Nicholas; Brain and Mind Centre with Glenda Halliday & Eleanor Drummond, PhD; UNSW EccDNA Brain Cancer Therapy with Orazio Vittorio & Ensieh Poursani. At this year's conference, Ed Cowan interviewed a key Hearts and Minds Investments Limited (ASX: HM1) portfolio executive - none other than Nick Molnar. Full video, transcript and information on the HM1: https://lnkd.in/g3PrDfvQ

At TDM, “Ownership” is at the heart of our investing philosophy. It was born out of one of the foundational values upon which TDM was built. Ben Gisz follows on from our ‘Letter to Starters’ to describe what “Ownership Investing” means in practice for our clients, our team at TDM, as well as our concentrated number of portfolio companies. https://lnkd.in/gFGze8JW

"A small insight isn’t going to make you any money. A big insight on its own might – but it’s also known as a guess. Only a big insight built on top of thousands of smaller insights gives you a real fighting chance of being right and generating outsized returns." Andy Simon on the tension between deep analysis and the big insights that produce outsized returns as an active investor. Read more below: https://lnkd.in/gMqCUn4P

Episode #3 of The Inner Game Podcast is out now! Think all top investors were straight-A students and laser-focused on success? Hamish Corlett’s story might surprise you. On the latest episode of The Inner Game Podcast, Hamish Corlett, Co-Founder and Director of our partner firm TDM Growth Partners, opens up about his early struggles with learning and how he transformed challenges like dyslexia into strengths. From co-founding a global investment firm to embracing mindfulness and resilience, his story is a powerful reminder that success isn’t always a straight line. Hamish’s insights on growth, resilience, and playing the inner game are pure gold for anyone looking to build a standout career. Don’t miss out on this inspiring conversation! 🎧 Listen here: https://hubs.ly/Q02VXLHZ0 #investmentmanagement #superfunds #fundsmanagement #investing #assetmanagement #futureimpact #diversity #inclusion

Too many CEOs distance themselves from the very thing they should be closest to – their customers. James Revell's recently published perspective distinguishes between the aspiration of being ‘customer obsessed with what it actually takes for leaders to prioritise a direct customer-product-service interaction and institutionalise it to ensure it drives competitive advantage. In his words; “𝘐 𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘵𝘩𝘢𝘵 𝘵𝘩𝘦 𝘭𝘦𝘢𝘥𝘦𝘳𝘴 𝘰𝘧 𝘵𝘩𝘦 𝘣𝘦𝘴𝘵 𝘤𝘰𝘮𝘱𝘢𝘯𝘪𝘦𝘴 𝘪𝘯 𝘵𝘩𝘦 𝘸𝘰𝘳𝘭𝘥 – 𝘵𝘩𝘰𝘴𝘦 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘴𝘵𝘳𝘰𝘯𝘨𝘦𝘴𝘵 𝘭𝘰𝘯𝘨-𝘵𝘦𝘳𝘮 𝘤𝘰𝘮𝘱𝘦𝘵𝘪𝘵𝘪𝘷𝘦 𝘢𝘥𝘷𝘢𝘯𝘵𝘢𝘨𝘦 𝘢𝘯𝘥 𝘴𝘶𝘴𝘵𝘢𝘪𝘯𝘢𝘣𝘭𝘦 𝘨𝘳𝘰𝘸𝘵𝘩 𝘱𝘳𝘰𝘧𝘪𝘭𝘦 – 𝘮𝘢𝘪𝘯𝘵𝘢𝘪𝘯 𝘮𝘰𝘳𝘦 𝘥𝘪𝘳𝘦𝘤𝘵, 𝘮𝘰𝘳𝘦 𝘤𝘰𝘯𝘵𝘪𝘯𝘶𝘰𝘶𝘴 𝘢𝘯𝘥 𝘮𝘰𝘳𝘦 𝘶𝘯𝘤𝘰𝘮𝘧𝘰𝘳𝘵𝘢𝘣𝘭𝘦 𝘳𝘦𝘭𝘢𝘵𝘪𝘰𝘯𝘴𝘩𝘪𝘱𝘴 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦𝘪𝘳 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳𝘴. 𝘈𝘯𝘥 𝘯𝘰𝘵 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘪𝘯𝘨 𝘵𝘩𝘦 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳 𝘪𝘯 𝘢𝘯 𝘢𝘣𝘴𝘵𝘳𝘢𝘤𝘵 𝘥𝘪𝘢𝘭𝘰𝘨𝘶𝘦 𝘣𝘶𝘵 𝘢𝘵 𝘵𝘩𝘦 𝘭𝘪𝘷𝘦 𝘪𝘯𝘵𝘦𝘳𝘴𝘦𝘤𝘵𝘪𝘰𝘯 𝘰𝘧 𝘳𝘦𝘢𝘭 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳𝘴, 𝘵𝘩𝘦 𝘱𝘳𝘰𝘥𝘶𝘤𝘵 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘴𝘦𝘳𝘷𝘪𝘤𝘦 𝘥𝘦𝘭𝘪𝘷𝘦𝘳𝘺.” 𝗞𝗲𝘆 𝗟𝗲𝘀𝘀𝗼𝗻𝘀 𝗳𝗼𝗿 𝗖𝗘𝗢𝘀 𝗮𝗻𝗱 𝗹𝗲𝗮𝗱𝗲𝗿𝘀: 1. Direct and continuous engagement with customers builds better products AND stronger relationships, removing the possibility of ‘strategy from the ivory tower’ that can inhibit large organisations 2. Empathy and understanding for frontline staff is build upon experiencing customer interactions firsthand Read the full article (link in comments) to learn more about how these practices can drive long term comptetive advantage

OPEN ROLE: Investment Team Intern Investment Team Intern Applications are now open for the March 2025 internship program. The program will run part-time for a six-month period. This is a great opportunity for students looking to develop a career in investing and gain exposure to global growth businesses. Current Investment Team member Sophia Croker initially joined TDM through this program in 2020. ABOUT YOU: You have a passion for investing and ideally have prior Investment Banking experience. HOW TO APPLY: Step 1: Send your CV to internship@tdmgrowth.com Step 2: You will be asked to upload a 2–3 minute video pitch answering the following questions: - Why are you interested in investing? - Why are you interested in TDM? - What is the one thing that we should know about you? If successful we will be in touch for an initial phone/video interview. The final round of interviews will be in the form of a case study. Intern Alumni Dominic Marino, provides some insight into his experience at TDM: 'My internship experience with TDM has been nothing short of excellent. Every day I am excited to come to work. The TDM internship asks me to think, not just do. I feel like I am part of the team. I have significantly improved my technical investor skill set, commercial acumen and professional capacity to articulate complex ideas. I encourage any student with a genuine passion for investing to apply.' Applications close on the 21st of October.

How can a company consistently exceed investor expectations? What transforms a good business into a great one? What are the catalysts that can lead to exceptional investor returns? These questions are fundamentally different versions of the same inquiry. We believe the answer partially lies in assessing whether “this company is a high-vitality business.” Positioned within our Growth Pillar, Vitality is a recent addition to our investment framework and is defined simply as "a company’s ability to successfully expand its total addressable market (‘TAM’) over time by developing new products and/or services." Harrison Moot provides our perspective on Vitality – how to identify it, how to analyse it, and importantly, why it is crucial for making outstanding growth investments. https://lnkd.in/gTqWwZiC

In the ‘90s in Newcastle Greg Boorer's mate advised him that ‘computers might have something to do with the future’. After a decade in Europe building early versions of data centres and cutting his teeth in sales, Greg made it home to Australia to found Canberra Data Centres, now known as CDC, a business that is now crucial to the security, social and economic wellbeing of all Australians. Having compounded earnings at +30% pa for the last 15 years, Greg has plenty of great lessons to pass on to founders. 𝘞𝘩𝘢𝘵 𝘥𝘪𝘥 𝘸𝘦 𝘵𝘢𝘬𝘦𝘢𝘸𝘢𝘺 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦𝘪𝘳 𝘴𝘶𝘤𝘤𝘦𝘴𝘴 𝘴𝘵𝘰𝘳𝘺? Deep listening to customers can unlock competitive advantage, particularly when operating in a commoditised industry. Listen in on Scaling Up!

“I had not seen this before. Most investors talk about an active approach, but seeing TDM’s up front was very unique.”  - Bruce Buchanan, CEO and Co-founder of Rokt By owning a concentrated portfolio (no more than 15 companies), we can focus on actively supporting our portfolio companies. We believe this active approach gets the best outcomes, but we also understand it is not for everyone.    The culture at Rokt encourages ‘vigorous debate’ and ‘radical candor’ - which has paired perfectly with our approach. This alignment of values has welcomed TDM’s contribution: as board members, as secondees, and as supportive long-term shareholders.  In this video, Bruce shares how TDM has supported Rokt during our five years (and counting) of partnership. Find the full story at https://lnkd.in/gW6pB4Rm

Dilution from stock-based compensation continues to have a meaningful impact on growth company valuations. The findings from last year's SBC-dilution analysis were eye opening: 1. There was an inverse correlation between SBC-based dilution and medium-term share price performance; 2. Not a single company who diluted at more than 3% average beat the Nasdaq over the medium term. This year, Tim Le has updated the analysis and again tediously scraped over a hundred 10-Ks of high-growth tech companies. A snapshot: The 2-year average SBC-dilution ratio ranges from 0.2% to 8.6%. Statistical breakdown of the 2-year average net SBC-dilution (incl. 2022 and 2023): • Top quartile – Less than 1.65% annual dilution • Median – 2.85% annual dilution • Bottom quartile – More than 4.14% annual dilution Read the full analysis on our website, which also includes, by popular demand, the affect of share buyback programs >>> https://lnkd.in/gJD7pdyj