A Fascinating Way to Invest

Fascination is an enduring and intrinsic trait within all of us. From birth we are fascinated about the environment around us, driven to explore, discover and learn. For generations it has led us to strive to understand the world around us and beyond, leading to amazing discoveries and knowledge that shape and benefit all our lives.

It is this same fascination that drives our curiosity and desire to discover investment opportunities and build our knowledge. At Lakehouse we don’t use traditional screens, whether they be based on sectors, geography, ranking simple financial metrics or funny greek letters. Instead we seek to harness our intangible desire to explore and challenge the boundaries of what we know. To discover companies that we believe have enduring business models that can deliver long term growth for our clients. By looking through a different fascination lens we aim to discover opportunities or reveal varied perceptions that others may miss.

What Fascinates us?

Three core fascinations form the beginning of our research process and idea generation. We believe businesses that have one or more of these enduring models are most likely to provide a runway for long-term sustainable growth.

Intellectual Property (IP)

Think brands, data, patents, or even corporate cultures that are difficult to replicate. Businesses with strong IP have enduring pricing power and, often, an innovative culture and strong distribution network that creates and scales new and valuable IP.

Network Effects

Think marketplaces, exchanges, payment networks, social networks. What is a network effect? A business exhibits a true network effect when the value of its products and/or services increases as more customers join the network. We’re passionate about businesses with network effects because many of them scale quickly with capital efficiency, creating a significant amount of value in short order.

Loyalty

Think enterprise software, payment processors, subscriptions, or any other form of business with a strong and intense focus on customer loyalty and retention. Importantly, we view loyalty as not simply resistance to high switching costs making it difficult for customers to move on, but also the delivery of value and delight to customers that makes them want to stay for long periods of time.

To hear more about each Fascination, and company examples in our Global Growth portfolio, listen to the short podcasts by each of our Fascination Strategy Captains.

Our Fascinations are only the beginning….

Once we have unearthed an idea through our Fascinations it is only the beginning of the investment journey. Next we must explore more deeply, build our knowledge, checklist every idea and write a detailed thesis for peer review. Most ideas never make it through this process, those that do are evaluated to ensure they fit into our concentrated and long term portfolio. To learn more about our disciplined investment process please click here.

Unit Price
Lakehouse Global Growth Fund Date Entry ($) Mid ($) Exit ($) Unit Price History
Latest Price 26-Nov-21 $2.2082 $2.2049 $2.2016 Click Here
Net Performance as at 31-Oct-21
1 Month 3 Month1 Year 3 Year (p.a.) Since Inception (p.a.)
Lakehouse Global Growth Fund, Net ^ -2.5% -2.5%22.9% 30.5% 24.9%
Benchmark* 1.1% 1.1%28.3% 15.2% 12.7%
Value Add -3.6% -3.6%-5.4% 15.3% 12.2%
^ Performance calculations are based on the month end exit price with distributions reinvested, after fees and expenses, since inception on 30 November 2017.
* Benchmark: MSCI All Country World Index net total returns (AUD).
Past performance is not indicative of future returns.

Disclosure: The Lakehouse Global Growth Fund owns shares of ServiceNow, Monster Beverage and Visa.