Stephen Otter
speaker
116 appearances
1 recordings
1 series
first heard Jun 2026
last heard 16 Jun
Stephen Otter’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Jun 2026 with 1.
Appearances
The other benefit, of course, and as you mentioned it,
Investing in a healthcare royalty has no correlation to music royalty, it has no correlation to a gas well, it has no correlation to a film and TV IP.
And so what we see in our portfolio is that in any given quarter, some sectors are up, some sectors are flat, one sector is down, you move to the next quarter,
The sector which was now down is now up and vice versa.
And so you end up in this very kind of consistent, predictable revenue stream because of the fact you're so diversified across the underlying investments and the underlying sectors.
Because how much you listen to the radio is not driven by how many healthcare treatments you buy, nor is it driven by how much gas you purchase in the U.S., right?
So the lack of correlation between the sectors helps quite a lot.
Yeah, so we like royalties because where we're investing, we're underwriting purely the yield.
So in every other asset class to generate a return, you're either reliant on interest rates, which we're not, or you're reliant on exits to generate the returns.
We've actually gone one step further, which is we have an IC philosophy where
which is if we can't make our target returns on a buy and hold basis only we don't even discuss the investment in the investment committee so we're kind of sat here a little bit agnostic in terms of what's going on in exit markets or interest rates because our returns are just not driven by them we're ultimately trying to provide our investors top line revenue exposure to best in class products which we view as not necessarily being counter cyclical but being very resilient because ultimately whether work is going well or badly you will listen to music
whether the markets are going up or down, you will still buy the healthcare treatments you're looking to buy.
So we're trying to provide very reliable income that people can count on.
The second part of it is because we don't fund costs, we don't suffer from cost inflation.
And if there is cost inflation, our margin isn't impacted.
If anything, though, we'd expect our returns to go up because we're a percentage of revenue.
If price is going up due to inflation, one would hope the price of the product being sold is also going up.
So we see ourselves as providing an inflation hedge to investors.
And then the other thing I would add is that we just see very little correlation to other asset classes.
the last seven years of doing this strategy we've had negative or low positive correlation to all other asset classes and so we're not here to replace anything that your clients or investors may have in their portfolios we're really here to just be a stabilizer and diversifier focused on capital preservation with some long-term growth exposure because
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