Unpacking titanium, healthcare, Japan, resources & more | James McDonald

James brings extensive experience from his time at Hunter Hall and Bankers Trust and shares his journey of building and managing the High Conviction Fund, which was founded in 2014 and now manages roughly $58 million as of the time of recording.

The fund, as of 28th June 2024, has an ethical framework and has returned on average 24.7% since inception, 14.4% over 5 years, 8.6% over 3 years, 33.6% over 2 years, and 55.8% for the past year. As a high conviction strategy, the fund holds roughly 20 companies at a time. The benchmark is the MSCI World Index, with roughly 50% in healthcare, 40% in materials, and the remainder across communication services and consumer discretionary.

We discuss quite an array of topics and companies from healthcare and resources all the way to the Japanese market and where the investment opportunity may be. Also, if you are curious about exploring new areas like myself, then I think you are really going to enjoy diving into the world of titanium with James.

In this ROCast, James unpacks the titanium market and manufacturing process. In particular, James delves into IperionX's groundbreaking technology to produce titanium metal more efficiently and sustainably. James explains how the traditional Kroll process for producing titanium is highly inefficient, losing around 60% to 80% of the material and making it impossible to recycle scrap effectively. In contrast, IperionX's patented, innovative hydrogen-based process converts scrap titanium into a powder that can be reused, drastically reducing scrap waste. You will learn about the potential for this technology to revolutionize various industries by making titanium more accessible and affordable. We also discuss the broader implications for the US supply chain, the environmental benefits of this new method, and the vast array of applications for titanium, from consumer electronics to military and aerospace.

Companies Discussed:

• Pengana (PE1.ASX)
• Clarity Pharmaceuticals (CU6.ASX)
• Genetic Signatures (GSS.ASX)
• Roche Diagnostics (ROG.SW)
• Eli Lilly (LLY)
• Novo Nordisk (NVO)
• CSL (CSL.ASX)
• ResMed (RMD.ASX)
• Transmedics (TMDX)
• IperionX (IPX.ASX)
• Apple (AAPL)
• Boeing (BA)
• Airbus (AIR.PA)
• WA1 Resources (WA1.ASX)
• Brazilian Rare Earths (BRE.ASX)
• Tesla (TSLA)
• Subaru (7270.T)
• Hitachi (6501.T)
• Isuzu (7202.T)
• Toyota (7203.T)
• Nintendo (7974.T)
• Sony (6758.T)
• Spotify (SPOT)