A proven track record of recognising value as an investor achieving extraordinary outcomes

Venture capital investor

Developed a uniform and accessories for an iconic Australian brand

Recipient of Westfield award for retail excellence in NSW in men’s fashion

MBA AGSM

“the highest level of professionalism and integrity.”
— Kylie Walsh National Operations Manager

How we measure matters

Quite often in the process of making a decision, we commence without properly considering the underlying assumptions we use to measure our progress, or our perception of the situation at present.

Projects

Aligning corporate presentation and one of Australia’s best brands

“To Whom It May Concern:

 

Elders Rural Services Pty Ltd have had a professional working relationship with Luke Herro... for over 12 months, during this time we have found his company to display the highest level of professionalism and integrity.
 

Luke and his staff have a passion for their industry which is reflected through their dedication to produce the finest products available in the market place. They worked closely with us on conveying our message and culture through the selected garments.

We will be proud to wear the uniform supplied... and look forward to a long relationship with Luke and his team.

Yours Sincerely

”
— Kylie Walsh National Operations Manager

Made with Wool

“‘To Luke and the entire team..,

Everyone looked so professional so I got the receptionist on the phone to order everyone extra shirts so they would always look this good....
these uniforms make us feel so.. professional like every woman wants to feel.
I know it wouldn’t have been an easy task to make the different sized women of the world all look good in the same uniform.   You have successfully done it in my office I have sizes from 6 – 16 here and everyone looks amazing in the same style of this range.
”
— Marianna Lemezina Principal
“We are all very happy with our shirts .....They wash well and are cool & comfortable.  We have had heaps of positive feedback from clients & friends saying how smart we look and an exemployee who has returned on a casual basis to help us out commented that they were the best Elders shirts she had seen!

Cheers
”
— Anne Pullman Finance & Sales Administration Elders Real Estate Tamworth
“so happy with the uniforms”
— Maria Felton
“It is fantastic. No word of a lie.

It’s probably my favourite piece.

It looks great, the material is comfortable, not too hot & fits so well. Doesn’t crush too much either.
”
— Hayley Jessica Brown Senior Property Manager
“You guys have been a pleasure to deal with....

”
— Caroline Glover Principal

“You have been amazing…..."

 

Jenny Birrell

National Manager of Operational Excellence

The strategic management of capital.

The strategic management of capital.

“You can’t stop the waves, but you can learn to surf.

”
— Jon Kabat-Zinn

How we Invest.

Billabong

During a period of low volatility in the market, Billabong (BBG) went into free fall after a number of failed transactions. While respecting this momentum, this created an opportunity to capture a parcel of BBG well below the value of its actual stock not to mention brand value and underlying operating business at just 25 cents thus achieving more than double the return on the investment in a relatively short period.

The Long View

Capital Decisions Matter

You may have heard of someone who, after purchasing a business for a small fortune in the hope of raising their income, soon discovered that the business was worthless.

Tishman Spyer Office Fund

Purchased between 2008 and 2009

During the peak of the financial crisis while the front page of the business section was covered with negative news on American office towers, one trust which invested in office towers (TSO) was sold down to around 10% of its NTA, far below break up value. Purchasing at the right point in the cycle lead to an 700% plus return in approximately 3 years

Australian Education Trust

Australian Education Trust Acquired between 2008 and 2009. The Australian Education trust was oversold when its main tenant ABC learning went into administration, for which the trust held the childcare properties. Trading well below the value of the properties on the balance sheet, the negative momentum in the stock enabled it to be acquired at an average price of 24cents. This stock now trades at over 2.10 and offers a dividend of over 5% on the current price. The result of this investment decision is a 900% return, without including the high yield dividend.

Decisions matter more.

There is a particular phenomena I see time and time again. A company becomes preoccupied with growth and operations and doesn't keep an eye on the balance sheet, then one day it suffers some adversity which despite being temporary in nature, triggers a chain of events where the company’s wealth is destroyed because it lacks the capital structure to withstand the otherwise bearable change. Like a fine tuned race car that can’t go off road, there is an impracticality, whereas low gearing turns out to be the only sustainable gear. 


  • A proven track record of recognising value as an investor achieving extraordinary outcomes

    Venture capital investor

    Developed a uniform and accessories for an iconic Australian brand

    Recipient of Westfield award for retail excellence in NSW in men’s fashion

    MBA AGSM

Luke has shown a consistent ability to recognise value in securities at times when they are out of favour with the market, evidenced at the peak of the financial crisis. When most were selling their exposure to the equity market, Luke was increasing his. Combined with vision, such extreme circumstances can give rise to some of the greatest opportunities. Luke has an MBA AGSM (Syd/UNSW), and has both a formal and fundamental understanding of business and investing. While formally trained, he is also aware of the weaknesses in the assumptions and methods of measuring in accounting standards.Through this understanding, Luke has the ability to recognise intrinsic value embedded in the balance sheet of a company below the surface of headline news and often published research. Having grown up in the 80s, he is acutely aware of the impact of cycles on investing decisions and the need to think independently of the market. Luke has significant practical experience in business, and his experience includes developing uniforms and accessories for an iconic Australian brand and receiving the Westfield NSW Award for retail excellence.

Luke has a broad vision, and is particularly aware of the power of character and manner when working with people. His ability to build positive relationships based on trust, both internally and externally to the organisation, is one of his greatest strengths.

Get in touch.

Contact

t. +612 82110581 s. Level 17 Angel Place | 123 Pitt St Sydney NSW 2000