☕️Bullish on Block

ECP's growth oriented philosophy has led it to an unloved sector

Good morning.

Like most fund managers, ECP Asset Management invests for the long haul. Unlike most fund managers, that has led it to the buy now, pay later sector.

ECP has been a long term holder of Block since the Afterpay days, and a portfolio manager Jared Poehl told Capital Brief, it’s also bullish on Macquarie and already taking a look at Guzman y Gomez. “The general philosophy is the economics of a business drive return. So we're looking for companies that are expanding their economic footprint,” he said.

“The last couple of years have gone the wrong way, but that's okay,” analyst Adam Byrnes added. “We've been acquiring that position. I think there's just a timing difference.

ASX as at market close. Commodities and crypto in USD.

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Market movers

Shares in Telix Pharmaceuticals climbed over 15% to close at $18.15 on Friday trade after the biopharmaceuticals firm announced positive data from its ProstACT SELECT trial for TLX591, a new treatment for metastatic castrate-resistant prostate cancer (mCRPC).

The trial indicated the therapy could delay cancer progression suggesting TLX591 could offer a new, effective treatment option with a manageable dosing schedule, improving patients' quality of life, the company said in a statement.

Telix is considering a Nasdaq listing to access deeper capital markets. Shares in the $6 billion Aussie darling’s have gained 56.2% this year, and the promising trial results drove the stock to a record high on Friday.

The quick sync

  • Sydney pub owner Jon Adgemis has secured a $400 million debt deal to refinance his hospitality group, with American private lender Muzinich acquiring some of his debts to Deutsche Bank. (The Australian).

  • Brookfield's $10.6 billion acquisition of Neoen faces scrutiny from the ACCC, as deal makers question the regulatory approvals required. (AFR)

  • Kinetic, Australia's rapidly growing bus company, aims to transition from diesel to electric buses, leveraging its success to secure a $4 billion sale. (AFR)

  • Boral, Holcim lead the race to solve 'green' concrete's challenges (Capital Brief)

  • The RBA, in agreement with Treasurer Jim Chalmers, is testing how low unemployment can sustainably go to justify maintaining lower interest rates to control inflation. (AFR)

  • Singaporean Zentree Investments seeks to delay equity raise that could see Rio Tinto acquire ERA (Capital Brief).

Capital Markets

  • Guzman y Gomez will list on the ASX next month under the ticker GYG with an estimated market cap of over $2.2bn. (Capital Brief)

  • Molycop, a $2bn industrial company, is considering an IPO in about two months if market conditions improve. (The Australian)


  • None

People moves

  • None

☝️ Know about a deal or people move we don’t? Hit reply.

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