Knowing when to sell: How growth investor Michael Frazis manages risk
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Why do markets appear more volatile and what does that mean for investors?
The hyperscalers are now going into debt as a group and borrowing huge amounts of money and raising equity in the markets to fund the CapEx. If they grow as planned next year they're gonna have to do even more of that. And that's completely changed the market because these they were the big stabilizers. Now you've got the opposite. So no matter what, it's gonna be a much less stable environment going forward. So we'll probably see more of these crazy moments. It's gonna be a much more volatile market.
Welcome to another episode of Equity Mates, a podcast where we explore what is possible in the world of investing. If you've just joined our community for the very first time, a huge welcome to our show. My name's Bryce.
And I'm Ren, and today we are talking all things high growth with a returning guest, Michael Frazis.
Yes, Michael Frazis is the chief investment officer at Frazis Capital Partners. And we've got him on because they've recently brought to the market an active ETF. Uh it's the Lion Active ETF. The ticker is RAW R O A R. And it really brings together Michael's love of high growth companies that we've spoken to him about many times over the years with a momentum quant. Tilt.
Yeah, I think uh for people who have followed Michael's journey and have heard him on the show before and seen him in the media, his story is a fascinating one in Australian funds management. He was the best at riding the twenty twenty one growth wave. Smash Fair to say? Yeah. That really like shot him to prominence, uh, had some big years there, and then got absolutely whacked in the uh inflation and interest rate sell-off of 2022 and 2023. And so he went away and thought a lot about risk management. And we spoke to him maybe a year or two ago, and he was speaking about how he was trying to build some risk models, and this conversation was an evolution of of that um and he's thinking a lot more about uh when to take profits uh and you know when to get out of stocks as they turn or or before they really start to crash.
So this is a really interesting conversation to think about his evolution, but also for our personal investing, how we can think about taking profits when we've had a big win on a an investment.
So a massive thank you goes to Frazis Capital Partners for supporting today's episode and helping us keep all of our content here at EquityMates free.
All right. Well with that said, let's get to our conversation with Michael Frazis.
Mike, welcome back to Equity Mates.
Thanks so much for having me back on.
It's been a massive month in markets. AI story has been unfolding. We've had a run. We've just come off a bumper earnings season. Starting at the top, how do you make sense of markets today?
Yeah, it seems like they're I mean we say this every time we chat, but they're just moving faster than ever, aren't they? There's like multiple cycles and mini cycles and rotations, you know, within every year at the moment. So at the moment it seems like AI is under a bit of pressure. You know, the data centers, chips, NVIDIA, all these kinds of companies. The small companies are down thirty, forty percent off the highs. And meanwhile it seems like there's been a bit of recovery in software, uh and some of those growth related names that you know, drop sixty, seventy percent. Mm. And so basically, you know, over the last 12 months there's been this huge rotation where everybody was massively overweight software, underweight semiconductors.
You know, it's it was early 2025, so I guess a year and six months now. It's hard to believe there was a very bearish view amongst professional managers on the AI cycle. It seemed like the models were slowing down and investment would slow down. And so exposure was extremely low and everybody was still really bullish on software. just completely reversed, you know, over the last kind of year or so. And then maybe in the last couple of months it seems to be rotating back. And, you know, just as everybody goes to max long semiconductors, they've peaked and and come off.
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Chapters
8 chapters
1
Why do markets appear more volatile and what does that mean for investors?
0:00–6:35
2
What happened with the Ashenbrenner AI‑trade blow‑up and what can investors learn from it?
6:35–12:51
3
Are AI‑infrastructure stocks starting to crack and how are cheaper Chinese models changing the landscape?
12:51–19:17
4
Why might Apple be the unexpected winner in the AI race?
19:17–25:14
5
What is driving the software comeback and which companies are showing the strongest momentum?
25:14–30:43
6
How has Michael Frazis updated his growth‑and‑momentum rules for taking profits?
30:43–36:59
7
Which GLP‑1 and personalized‑cancer‑vaccine biotech breakthroughs could reshape healthcare investing?
36:59–43:27
8
Why did Frazis Capital launch the ROAR Active ETF and how does it fit into a retail‑focused growth strategy?
43:27–48:47
Speakers
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