February 10, 2016

Tech stock investor Bailador bets on tailwinds for sector

By Tim Boreham, The Australian via www.theaustralian.com.au

Tech stock investor Bailador bets on tailwinds for sector

Given the choice of heading legacy media and printing dinosaurs or being free to pick up-and-coming tech investments, David Kirk knows where he would rather be.

“I have worked in sectors with headwinds and tailwinds and working for those with tailwinds is more fun” says the former CEO of Fairfax Media and PMP (and current chairman of Trade Me). After leaving Fairfax in 2008, Kirk teamed with Champ co-founder Paul Wilson to create tech stock picker Bailador, which listed in November 2014 in a $62m raising.

Bailador invests in unlisted plays, the sweet spot being $2m-$10m of recurring revenue. It always takes a board seat and uses convertible preference shares that cap the downside without cirmping the potential gains.

Bailador argues that similar funds globally trade at a premium to net asset value, such as Imperial Innovations of Britain, which has changed hands at up to 50 per cent above the odds.

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