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Creating “Compellingness” for Exponential Growth: H.E.R.O. Innovators Synchro Food, AS ONE, Prestige International & Corporate Travel Management

H.E.R.O. HeartWare | 25 June (Issue 7) | Creating “Compellingness” for Exponential Growth

At that time, I really thought I am challenging what no one else is challenging,” recalled Shinichi Fujishiro, the founder & CEO of Synchro Food (TSE: 3963), an operator of online matching platforms for establishments in the the restaurant industry which has grown sales and profits for 15 consecutive years since its founding and now blossomed into a listed company with US$277 million in market value and the No. 1 online platform where nearly one out of every four restaurant operator is registered with Synchro Food which has over 129,000 registered users. “Since it is highly likely that the restaurant business will succeed if it can know the information of a good restaurant location before rivals, the property information was highly confidential… when the website is opened, only two to three companies registered the property. The business did not grow at all. It was harder than I thought to ‘earn money’ at the beginning, it felt depressing. There were days when I could not sleep,” said Shinichi-san on his difficult early days.

How did you keep your spirits up during this difficult period, we ask. Shinichi’s reply was inspiring: “The challenge itself is courageous and wonderful, and if it fails, the trace will remain, so someone may be able to return it to society. After thinking so, my feelings have become brighter. I felt inspired by the pride that ‘I am contributing to society’. I did not start from the ambition to enlarge the company, I wanted to do something that no one was doing and want to provide new value added to the people involved in the restaurant establishments of the world. When people gather around for me, it is strange and my feelings get brighter,” Shinichi said animatedly. “Looking at the web services provided by Synchro Food, it is easy to see the compelling convenience provided to our customers. To open and operate a restaurant in the conventional manner, you need to first of all look for a specialized property that is suitable, you need to visit a real estate agent, you then need to find the interior designers, you need to buy kitchen equipment, select ingredients suppliers, find the right people to take on the jobs. Even after the opening of the store, you need to attract customers, do promotion, handle accounting, do attendance management etc, which are all work waiting for you to solve. If you have a website that will provide compelling convenience in supporting them all at once, you will want to jump into it.”

Is the company creating “compellingness” in the products, services or solutions so that customers “want to jump into it”? – This is one of the questions that we like to ask, observe and analyze in our journey to discover and invest into a selected group of exceptional innovators with non-linear exponential growth potential whom we whom we call the H.E.R.O., the Honorable, Exponential, Resilient Organization. Offering something “compelling” indicates that the “alternative” solution solves an acute pain point for customers as compared to what was normally and currently done and pushes us to drive towards a course of action. Understanding the Purpose behind creating this “compellingness” and the “craftsmanship” involved in delivering this are critical in assessing the staying power of this “compellingness”. Shinichi shared how he was motivated to start Synchro Food as a result of his childhood experience of helping out his parents who were vegetable wholesalers selling to restaurants and he felt that many of the problems faced by the restaurant businesses were due to the lack of information gathering tools. After graduation and having acquired IT skills at an IT management consultancy firm, he resolved to change the restaurant industry by making use of his knowledge. There is also a certain craftsmanship in their in-house design and development of the websites from improving upon customers’ feedback.

“Compellingness” in “resolving customers’ troublesome times” is also the secret ingredient powering the success of AS ONE (TSE: 7476), as shared by Takuji Iuchi, the third-generation business leader of the specialist B2B platform business model that carved out a profitable niche and a market value of over US$1.3 billion selling through catalogs and its ecommerce site AXEL a vast array of laboratory and healthcare instruments. Takuji-san shared how their customers “are people who aim to overcome various problems at the work site, including researchers. They have various specialized needs, such as they want a tool and equipment that can make the experiment in a vacuum state or under zero gravity. Our strength is to not only deliver these products seamlessly and speedily, but also to listen to such voices and respond to the needs.” By pursuing their work with craftsmanship, AS ONE expanded into consulting for their customers: “Instruments and analyzers used for research are required to be accurate. Once a year, it is necessary to perform calibration work to check the accuracy of the machine, but it is a difficult task to put out one by one to the manufacturer. Therefore, we are also developing services such as contracting entire calibration services for the factory and lab customer while they are on holiday. Because the burden on the site is reduced at once, we delighted the busy researchers. In this way, I think that there are more things we can do if we think from the viewpoint of resolving customers’ troublesome times.” Takuji has a grander purpose to make AS ONE into “a company that employees can tell from your heart to your most important person, son, daughter, wife, husband, best friend that ‘It is such a nice company, there is no one else!’ It is easy for employees to be feeling that even though the company is stable and there is no big dissatisfaction, there is no sense of fulfillment either. I want employees to feel that their time in the company, where they spend most of their life, is meaningful.”

Shinichi Tamagami, the founder and CEO of Prestige International (TSE: 4290), also shared the compellingness of Prestige’s unique BPO solutions in resolving roadside-assistance problems for car insurance subscribers, home-assistance services for condo developers and home owners (from water leakage to lost of keys, house cleaning, parking assistance etc): “Our job and management philosophy of the Group is to listen to the inconvenience, troubles and embarrassing things of end users and guide solutions. Since our founding, the Group has always created new services and has continued to grow under this management philosophy. Today, we are developing businesses to solve each problem of customers in various genres such as automobiles, real estate, insurance and guarantee. Regardless of how the times change, we continue our efforts day and night to become the one and only existence that can solve every of these inconvenience, troubles and problems that occur daily for people before anyone else.”

This week in H.E.R.O. HeartWare: Weekly Asia Tech News with brief highlights of the inspiring entrepreneurial stories of tech leaders in Asia whom we have been monitoring over the past decade in our broader watchlist of around 200 listed Asian tech companies and our focused portfolio of 40 HERO Innovators who reveal their problems and successes behind building the company, we have:

(1) Shinichi Fujishiro 藤代真一, founder and CEO of Synchro Food シンクロ・フード (TSE: 3963, market cap US$277m), the No. 1 online platform operator for restaurants industry where nearly one out of every four restaurant operator is registered with Synchro Food which has over 129,000 registered users;

(2) Takuji Iuchi 井内卓嗣, President of AS One アズワン (TSE: 7476, market cap US$1,360m), a specialist B2B platform business model that carved out a profitable niche selling through catalogs and its ecommerce site AXEL a vast array of laboratory and healthcare instruments;

(3) Shinichi Tamagami 玉上進一, founder and CEO of Prestige International プレステージ・インターナショナル (TSE: 4290, market cap US$890m), a unique platform business model that provides business process outsourcing (BPO) services in Japan and internationally. It offers (1) road assistance services for nonlife insurance companies and auto industry, as well as accident response and support; (2) property assistance services, such as home assistance for condominium developers, and real estate management and agency companies, as well as parking assistance for parking lot operators; (3) insurance BPO services, including claims handling services and health care programs; (4) extended warranties for automobiles, rent guarantees, household equipment warranties, and nursing care and healthcare expense guarantees; and (5) supply-chain management (SCM), IT, and mobile solutions; CRM services;

(4) Jamie Pherous, founder and CEO of Corporate Travel Management Limited (ASX: CTD, market cap US$2,151m), which manages the purchase and delivery of travel services for the corporate market worldwide with its technological solutions platform.

We now live in an exponential world, and as the Baupost chief and super value investor Seth Klarman warns, disruption is accelerating “exponentially” and value investing has evolved. The paradigm shift to avoid the cheap-gets-cheaper “value traps” investment mistakes, to keep staying curious & humble, and to keep learning & adapting, has never been more critical for value investors. We believe tech-focused innovators with non-linear exponential growth potential are the most relevant multi-year investment trend and opportunity. Yet we do not want to chase the highly popular megacap tech stocks, overpay for “growth”, or fall for the “Next-Big-Thing” trap by chasing to invest in fads, me-too imitators, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model, and we want to know how to distinguish between the true innovators and the swarming imitators. We see a distinct opportunity in under-the-radar underappreciated Asian SMID-cap tech stocks with unique scalable business models run by high-integrity entrepreneurs with a higher purpose in solving high-value problems.

H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners at the ARCHEA Asia H.E.R.O. Innovators Fund, the only Asian SMID-cap tech-focused fund in the industry. The H.E.R.O. HeartWare Weekly highlights interesting tech news and listed Asian emerging tech innovators with unique and scalable wide-moat business models to keep yourself well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy in Asia as part of our thought leadership for our ARCHEA Asia HERO Innovators Fund to add value to our clients and the community.

Some of the HERO Innovators in the focused portfolio include the largest online-to-offline pet insurance company in Japan with over 60% domestic share of the growing pet insurance market with over 636,000 policies in force generating over 98% sticky recurring revenue income & cashflow (Japanese households own 20m pets and only 1.3m or 6.3% were insured vs 22% of the 15m pets were insured in UK), and is a tech innovator with services that include allowing insurance claims to be made via LINE in just three minutes, an industry first, enabled by its powerful database & analytical prowess of more than 10 million insurance claims tied to illnesses and accident that allow the company to propose preventive measures by examining how animals become sick and how accidents occur. This highly profitable online pet insurance with a healthy net-cash balance sheet founded by an inspiring and down-to-earth entrepreneur with an agricultural economics background who started his career at a top insurance company is an archetypal H.E.R.O. Innovator.

Hope you find the weekly report to be useful and insightful. Please give us your candid feedback and harshest criticisms so that we can improve further to serve you better. Besides the BATTSS (Baidu, Alibaba, Tencent, TSMC, Softbank, Samsung), do also tell us which Asian tech entrepreneurs & CEOs whom you admire and respect and why – we will endeavor to do up profiles of them for sharing with the community. Please email kb@heroinnovator.com on your thoughts, thank you very much. Have a beautiful week ahead.

PS: We are grateful to be invited to speak at the upcoming SharingAlpha-BrightTALK’s Investing In Asia Summit 2018 (July 12) – Finding Value in Asia: Discovering Tech Innovators in an Exponential World. There will be a live Q&A session at the end of the webinar. In the webinar, we will be sharing our framework and systematic process to identify winners, including rethinking the economic “moat” analysis which is a more defensive mindset and lagging-indicator framework to protect against competitors by complementing it with the more offensive “Catapult” 4Cs leading-indicator analysis (the Exponential Edge in “Curiosity”, “Community”, “Compellingness-Craftsmanship”, “Circumspection”) to discover innovators creating, enabling and capturing new demand with exponential non-linear growth potential. You can find more details on our abstract of the webinar below. We look forward to seeing you at the webinar on July 12, 9am British Standard Time (10am Swiss Time or 4pm Singapore Time), thank you so much.

Warm regards,

KB

The ARCHEA Asia H.E.R.O. Innovators Fund (www.heroinnovator.com) is the only Asian SMID-cap tech-focused fund in the industry. H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners. The investment objective seeks to capture long-term investment returns created by disruptive forces and innovation by focusing on high-quality and liquid listed equities in the Asia-Pacific region that ride on and benefit from them. Through our cross-sector and in-depth fundamental research process, the Fund aim to provide access to companies whom we believe are run by high-integrity, honorable and far-sighted owner-operators with a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to create, expand and service their total addressable market, including the resiliency and balance sheet strength to maintain or grow profitability, pricing power and market positions through up/downturns in the economy.

The ARCHEA H.E.R.O. Innovators Tech Fund is a UCITS V fund domiciled in Luxembourg, and is available to both retail and accredited investors in Europe (including Switzerland, Germany, France, Denmark, Belgium, Luxembourg) and qualified offshore investors worldwide. The ARCHEA Asia HERO Innovators Fund is now in the pre-launch stage, subject to regulatory approval. We will also be registering the funds under MAS CISNET for distribution in Singapore. Our target fund launch date for the Founders’ Series is in September 2018.

We have secured capital commitments from several institutional and high net-worth investors. Once we have gotten our ticker code and approval from the regulator for our UCITS fund, interested long-term partners can simply buy or sell units in the fund, just like the buying or selling of listed shares, by approaching any bank of your choice with the ticker code and wire the funds into an independent custodian bank. As a strictly regulated UCITS fund that is also audited by PwC, there is daily liquidity to buy or sell, and we have zero exit fees. If you are interested to participate in the exponential growth journey of the H.E.R.O. Innovators who are solving real-world high-value problems and have helped create what the world around you looks like today and tomorrow, please contact KB by email kb@heroinnovator.com or whatsapp +65 9695 1860.

How to Know If We are Right for Each Other? 

You are an intelligent and thoughtful high net-worth investor, business owner, family office, institutional investor, allocator, or financial advisor who want to:

  • You want to learn and be well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy, and feel more confident in your knowledge in how these innovators are indispensable in the well-being of your daily life.
  • Yet, you do not wish to follow the crowd like everyone else to herd in the highly popular mega-cap tech stocks.
  • And you definitely do not want to fall for the Next-Big-Thing trap by investing in fads, me-too imitators, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model, and you want to know how to distinguish between the true innovators and the swarming imitators.
  • You want to be proud of the entrepreneurs and owner-operators running the companies whom you invest in to generate sustainable returns, that they are honorable, high-integrity, far-sighted, and have a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to grow profitably through up/downturns in the economy.

[Upcoming] Speaking at SharingAlpha-BrightTALK’s Investing in Asia Summit 2018 (July 11-12) – Finding Value in Asia: Discovering Tech Innovators in an Exponential World

We are grateful to be invited to speak at the upcoming SharingAlpha-BrightTALK’s Investing In Asia Summit 2018 (July 12) – Finding Value in Asia: Discovering Tech Innovators in an Exponential World. There will be a live Q&A session at the end of the webinar. Below is our abstract. You can register for free to participate in the webinar. We look forward to seeing you at the webinar on July 12, 9am British Standard Time (10am Swiss Time or 4pm Singapore Time), thank you so much.

Abstract

From imitators to innovators, a selected group of Asian tech companies have evolved and transformed to lead business model innovations that even influence and inspire the world, as led by the hugely popular megacap tech giants BATTSS (Baidu, Alibaba, Tencent, TSMC, Samsung, Softbank) who had produced strong earnings growth and returns. Their immense popularity and valuation premium resulted in just these five tech giants (not including Softbank with its $100 billion Vision Fund) to account for over half of the Asian tech index weightage, with the other half comprises mostly of the usual contract manufacturers and commoditized hardware “tech-nosaurs” as some would say.

Can the megacap tech elephants still dance? Or is this the better question: Is there an alternative and better way to capture long-term investment returns created by disruptive forces and innovation without falling for the “Next-Big-Thing” trap by chasing to invest in the countless fads, me-too imitators, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model?

We see a distinct value opportunity in selective lesser-known underappreciated Asian SMID-cap tech stocks who are exceptional market leaders in their respective fields with unique scalable business models run by high-integrity, honorable and far-sighted entrepreneurs with a higher purpose in solving high-value problems for their customers and society whom we call H.E.R.O. – “Honorable. Exponential. Resilient. Organization.”.

  • Why are these selective exponential & exceptional innovators overlooked, under-researched and mispriced winners and the most relevant multi-year investment trend and opportunity?
  • The framework and systematic process to identify these winners, including rethinking the economic “moat” analysis which is a more defensive mindset and lagging-indicator framework to protect against competitors by complementing with the more offensive “Catapult” 4Cs leading-indicator analysis (the Exponential Edge in “Curiosity”, “Community”, “Compellingness-Craftsmanship”, “Circumspection”) to discover innovators creating, enabling and capturing new demand with exponential non-linear growth potential.
  • How to avoid the investing pitfalls and traps of Asian-style accounting fraud and misgovernance which western-based fraud detection tools and techniques have not been adequately adapted to the Asian context.
  • Selected case studies.

About KB:

Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized investment management, investment advisory & research services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian equity fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Detecting Accounting Fraud in Asia as an official module at SMU. KB remains grateful to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community.

Selected media archives:

Scouring Accounting Footnotes to Prevent Tunneling Fraud, Business Times, 19 Aug 2015 (PDF)

Reforming Corporate Governance, Business Times, 25 Nov 2000 (PDF)

The Secret to Business Resilience: Be Like the Bamboo, Not the Oak, TODAY, 8 April 2013 (PDF)

Creating Bamboo Innovators in Singapore, Straits Times, 1 April 2013 (PDF)

管理狮城的狮子企业家 The Power of Vision, Business Times, 15 May 2000 & Lianhe Zaobao, 9 Aug 2010 (PDF)

Why ‘Democracy’ and ‘Drifter’ Firms Can Have Abnormal Returns: The Joint Importance of Corporate Governance and Accounting Quality in Separating Winners from Losers, Review of Social, Economic and Administrative Studies, Vol. 25 no. 1 (2011): 3-55. (PDF)

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Mini Workshop | 100X: Be Exponential, Be Exceptional Like a H.E.R.O.! Business Model Innovation & Investment Insights to Transform SMEs Into Exponential Enterprises from $10 Million to $1 Billion

Mini Workshop | 100X: Be Exponential, Be Exceptional Like a H.E.R.O.! Business Model Innovation & Investment Insights to Transform SMEs Into Exponential Enterprises from $10 Million to $1 Billion

We are planning mini-workshops in partnership with a quality audit & consultancy firm for their clientele base of SME business owners to share about H.E.R.O. – below is a brief synopsis. If there is available space, we will open up the workshop to interested qualified investors who are lifelong learners. More details on the dates and venue to be shared at a later date. If you are interested to find out more or reserve a seat, please contact KB, thank you.

Synopsis:

Disruptive innovation is accelerating exponentially across many industries, upending passive companies and benefiting selective innovators whom we call H.E.R.O., which stands for “Honorable. Exponential. Resilient. Organization.”

Always feel that the insights from the usual case studies of big giants from Apple to Alibaba may not be relevant and applicable to your SME? H.E.R.O. Innovators are not your usual SMEs – they are exceptional market leaders in their respective fields and are 10X exponential compounders in profits and market value. What does it take to be exponential and exceptional like a H.E.R.O. and scale a SME 10 times or even 100X from $10 million to $1 billion in market value?

What are the business model innovation and investment insights that business owners, CEOs, managers and investors can learn and discover from the real-world case studies of H.E.R.O. Innovators that can be transformed into growth and positive change for yourselves?

Are we willing to commit ourselves and our companies to a process of mobilization, learning and discovery that progressively unlocked more of the company’s and personal full potential?

Part 1: Be Exponential! 天时

  • Stay ahead of the curve and keep your head when all others are losing theirs in an exponential world by acquiring the ability to tap on the technological insights of H.E.R.O. Innovators as a source of endless innovation for you and your team.

Part 2: Be Exceptional! Business Model Innovation Insights 地利

  • Discover why Asian H.E.R.O. Innovators outperform to create value regardless of macroeconomic potholes and bumps and the innovations they introduce to make the bumps work for them – and how you can acquire the ability to adapt them to work for you and your team.
  • Learn why do two companies in similar industry with each earning the same absolute profit size differ vastly in their market value in the stock market.
  • Understand the surprising insight why sales, profit and tangible asset growth may not translate to market cap growth and the secrets to unlocking business valuation.

Part 3: Be a H.E.R.O.! CEO 2.0 人和

  • Master lessons in overcoming challenges, hardships and adversities from the leaders helming Asian H.E.R.O. Innovators who propelled some of today’s innovative next-generation companies to success. Avoid business mistakes of the decisions of H.E.R.O. Innovators.

Participants Profile:

JOIN US in this thriving community of serious entrepreneurs and value investors where we come together and profit from sharing ideas.

  • Business Owners, CEOsCFOs and company executives aspiring to scale new heights for their businesses and last the distance to lead a meaningful and successful life;
  • Finance professionalsaccountants, and non-financial professionals who are keen to enhance their understanding of business building and value investing principles for professional and personal use;
  • Scions of business owners who desire to sharpen their business and investment acumen, manage challenges in family business, wealth preservation and creation, and network with other entrepreneurs and senior managers.

About KB:

Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized investment management, investment advisory & research services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian equity fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Detecting Accounting Fraud in Asia as an official module at SMU. KB remains grateful to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community.

Selected media archives:

Scouring Accounting Footnotes to Prevent Tunneling Fraud, Business Times, 19 Aug 2015 (PDF)

Reforming Corporate Governance, Business Times, 25 Nov 2000 (PDF)

The Secret to Business Resilience: Be Like the Bamboo, Not the Oak, TODAY, 8 April 2013 (PDF)

Creating Bamboo Innovators in Singapore, Straits Times, 1 April 2013 (PDF)

管理狮城的狮子企业家 The Power of Vision, Business Times, 15 May 2000 & Lianhe Zaobao, 9 Aug 2010 (PDF)

Why ‘Democracy’ and ‘Drifter’ Firms Can Have Abnormal Returns: The Joint Importance of Corporate Governance and Accounting Quality in Separating Winners from Losers, Review of Social, Economic and Administrative Studies, Vol. 25 no. 1 (2011): 3-55. (PDF)

Be Exponential with Commitment & Community: How H.E.R.O. Innovators Syuppin, Itokuro and Bandai Namco Build A Community of Enthusiasts to Power Growth – H.E.R.O. HeartWare: Weekly Asia Tech News – 18 June (Issue 6)

H.E.R.O. HeartWare: Weekly Asia Tech News – 18 June (Issue 6)

“Everything is a commodity unless it contains ‘commitment’. It will be the same for any business, but if you like that product and do not have deep knowledge, you will not be able to go beyond that, but I will beat the limit and barrier if I do it in detail. I realize that commitment and dedication are important properties of entrepreneurs. Commitment brings sticking connection with people.”

This insight was shared by Kei Suzuki, founder and Chairman of Syuppin (TSE: 3179, market cap US$344m), who forged a unique business model with operating profit jumping 4-fold over the past 5 years in building a community of over 360,000 enthusiasts buying and selling used products with long-lasting value in mid-to-higher-end cameras, watches, writing instruments, and sports bicycles. Innovations to foster an environment of integrity, authenticity, safety, trust, sense of curiosity, knowledge-discovery-and-sharing for the Syuppin members include the camera industry’s first unique after-sales service “forever safe warranty” in equipment inspection/cleaning; the ability for customers to view photos taken from the specific camera on the product page; a photo-sharing app for camera enthusiasts to connect users to the world and discover high-quality photos and photo-shooting spots in which maps and photos are linked, building strong relationships with the customers through multi-faceted information dissemination.

The capacity to develop and sustain a vibrant community of users and customers is the secret sauce that powers the success and non-linear exponential growth of a selected group of unique enterprises whom we call the H.E.R.O., the Honorable, Exponential, Resilient Organization. Commitment and dedication towards the shared purpose and the service are crucial ingredients to forge an emotional connection and foster a sense of belonging with the community of users.

Mitsuaki Taguchi, CEO of Bandai Namco (TSE: 7832, market cap US$9,173m), also shared the secret to why Gundam is still loved by its community of fans after nearly 40 years, and how Bandai Namco creates the capacity and capability to keep innovating, “There is a fan base and existing users who come back because they know goodness.” Manabu Yamaki, founder and CEO of Itokuro (TSE: 6049, market cap US$637m), also shared how the No. 1 dominant internet media services for private cram school navigation with its “Jyuku Navi” “word-of-mouth” portal site commands over 80% share of the users.

This week in H.E.R.O. HeartWare: Weekly Asia Tech News with brief highlights of the inspiring entrepreneurial stories of tech leaders in Asia whom we have been monitoring over the past decade in our broader watchlist of around 200 listed Asian tech companies and our focused portfolio of 40 HERO Innovators who reveal their problems and successes behind building the company, we have:

(1) Manabu Yamaki 山木学, founder and CEO of Itokuro イトクロ (TSE: 6049, market cap US$637m), the No. 1 dominant internet media services for private cram school navigation with its “Jyuku Navi” “word-of-mouth” portal site which commands over 80% share of the users according to Rakuten research;

(2) Kei Suzuki 小野尚彦, founder and Chairman & Naohiko Ono 鈴木慶, CEO of Syuppin シュッピ (TSE: 3179, market cap US$344m), which operates an integrated business model of e-commerce websites and retail stores for buying and selling used products in Japan, focusing on used digital cameras, lenses, and accessories (MapCamera.com); new and used watches (gmt-j.com); writing instruments (kingdomnote.com); and bicycles comprising road bikes and other sport bicycles (crowngears.com);

(3) Mitsuaki Taguchi 田口三昭, CEO of Bandai Namco バンダイナムコ (TSE: 7832, market cap US$9,173m). the entertainment brand platform proactively enabling innovative characters from Gundam, Dragon Ball, Kamen Rider, One Piece, Naruto, Super Sentai (Power Rangers), Ultraman to Anpanman, Ben10, Sailor Moon, Pretty Cure, iDOLM@STER, Love Live!, etc;

(4) John Guscic, Managing Director of Webjet (ASX: WEB, market cap US$1,180m), which provides online travel booking services in Australia, New Zealand, and internationally. It operates through Business to Consumer (B2C) and Business to Business (B2B) Travel segments.

We now live in an exponential world, and as the Baupost chief and super value investor Seth Klarman warns, disruption is accelerating “exponentially” and value investing has evolved. The paradigm shift to avoid the cheap-gets-cheaper “value traps” investment mistakes, to keep staying curious & humble, and to keep learning and adapting, has never been more critical for value investors. We believe tech-focused innovators with non-linear exponential growth potential are the most relevant multi-year investment trend and opportunity. Yet we do not want to chase the highly popular megacap tech stocks, or fall for the “Next-Big-Thing” trap by chasing to invest in fads, me-too imitators, cash-burning start-up tech companies. We see a distinct opportunity in underappreciated Asian SMID-cap tech stocks with unique scalable business models run by high-integrity entrepreneurs with a higher purpose in solving high-value problems.

H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners at the ARCHEA Asia H.E.R.O. Innovators Fund, the only Asian SMID-cap tech-focused fund in the industry. The H.E.R.O. HeartWare Weekly highlights interesting tech news and listed Asian emerging tech innovators with unique and scalable wide-moat business models to keep yourself well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy in Asia as part of our thought leadership for our ARCHEA Asia HERO Innovators Fund to add value to our clients and the community.

Some of the HERO Innovators in the focused portfolio include the largest online-to-offline pet insurance company in Japan with over 60% domestic share of the growing pet insurance market with over 636,000 policies in force generating over 98% sticky recurring revenue income & cashflow (Japanese households own 20m pets and only 1.3m or 6.3% were insured vs 22% of the 15m pets were insured in UK), and is a tech innovator with services that include allowing insurance claims to be made via LINE in just three minutes, an industry first, enabled by its powerful database & analytical prowess of more than 10 million insurance claims tied to illnesses and accident that allow the company to propose preventive measures by examining how animals become sick and how accidents occur. This highly profitable online pet insurance with a healthy net-cash balance sheet founded by an inspiring and down-to-earth entrepreneur with an agricultural economics background who started his career at a top insurance company is an archetypal H.E.R.O. Innovator.

Hope you find the weekly report to be useful and insightful. Please give us your candid feedback and harshest criticisms so that we can improve further to serve you better. Besides the BATTSS (Baidu, Alibaba, Tencent, TSMC, Softbank, Samsung), do also tell us which Asian tech entrepreneurs & CEOs whom you admire and respect and why – we will endeavor to do up profiles of them for sharing with the community. Please email kb@heroinnovator.com on your thoughts, thank you very much. Have a beautiful week ahead.

Warm regards,

KB

The ARCHEA Asia H.E.R.O. Innovators Fund (www.heroinnovator.com) is the only Asian SMID-cap tech-focused fund in the industry. H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners. The investment objective seeks to capture long-term investment returns created by disruptive forces and innovation by focusing on high-quality and liquid listed equities in the Asia-Pacific region that ride on and benefit from them. Through our cross-sector and in-depth fundamental research process, the Fund aim to provide access to companies whom we believe are run by high-integrity, honorable and far-sighted owner-operators with a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to create, expand and service their total addressable market, including the resiliency and balance sheet strength to maintain or grow profitability, pricing power and market positions through up/downturns in the economy.

The ARCHEA H.E.R.O. Innovators Tech Fund is a UCITS V fund domiciled in Luxembourg, and is available to both retail and accredited investors in Europe (including Switzerland, Germany, France, Denmark, Belgium, Luxembourg) and qualified offshore investors worldwide. The ARCHEA Asia HERO Innovators Fund is now in the pre-launch stage, subject to regulatory approval. We will also be registering the funds under MAS CISNET for distribution in Singapore. Our target fund launch date for the Founders’ Series is in September 2018.

We have secured capital commitments from several institutional and high net-worth investors. Once we have gotten our ticker code and approval from the regulator for our UCITS fund, interested long-term partners can simply buy or sell units in the fund, just like the buying or selling of listed shares, by approaching any bank of your choice with the ticker code and wire the funds into an independent custodian bank. As a strictly regulated UCITS fund that is also audited by PwC, there is daily liquidity to buy or sell, and we have zero exit fees. If you are interested to participate in the exponential growth journey of the H.E.R.O. Innovators who are solving real-world high-value problems and have helped create what the world around you looks like today and tomorrow, please contact KB by email kb@heroinnovator.com or whatsapp +65 9695 1860.

How to Know If We are Right for Each Other?

You are an intelligent and thoughtful high net-worth investor, business owner, family office, institutional investor, allocator, or financial advisor who want to:

  • You want to learn and be well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy, and feel more confident in your knowledge in how these innovators are indispensable in the well-being of your daily life.
  • Yet, you do not wish to follow the crowd like everyone else to herd in the highly popular mega-cap tech stocks.
  • And you definitely do not want to fall for the Next-Big-Thing trap by investing in fads, me-too imitators, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model, and you want to know how to distinguish between the true innovators and the swarming imitators.
  • You want to be proud of the entrepreneurs and owner-operators running the companies whom you invest in to generate sustainable returns, that they are honorable, high-integrity, far-sighted, and have a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to grow profitably through up/downturns in the economy.

Mini Workshop | 100X: Be Exponential, Be Exceptional Like a H.E.R.O.! Business Model Innovation & Investment Insights to Transform SMEs Into Exponential Enterprises from $10 Million to $1 Billion

We are planning mini-workshops in partnership with a quality audit & consultancy firm for their clientele base of SME business owners to share about H.E.R.O. – below is a brief synopsis. If there is available space, we will open up the workshop to interested qualified investors who are lifelong learners. More details on the dates and venue to be shared at a later date. If you are interested to find out more or reserve a seat, please contact KB, thank you.

Synopsis:

Disruptive innovation is accelerating exponentially across many industries, upending passive companies and benefiting selective innovators whom we call H.E.R.O., which stands for “Honorable. Exponential. Resilient. Organization.”

Always feel that the insights from the usual case studies of big giants from Apple to Alibaba may not be relevant and applicable to your SME? H.E.R.O. Innovators are not your usual SMEs – they are exceptional market leaders in their respective fields and are 10X exponential compounders in profits and market value. What does it take to be exponential and exceptional like a H.E.R.O. and scale a SME 10 times or even 100X from $10 million to $1 billion in market value?

What are the business model innovation and investment insights that business owners, CEOs, managers and investors can learn and discover from the real-world case studies of H.E.R.O. Innovators that can be transformed into growth and positive change for yourselves?

Are we willing to commit ourselves and our companies to a process of mobilization, learning and discovery that progressively unlocked more of the company’s and personal full potential?

Part 1: Be Exponential! 天时

  • Stay ahead of the curve and keep your head when all others are losing theirs in an exponential world by acquiring the ability to tap on the technological insights of H.E.R.O. Innovators as a source of endless innovation for you and your team.

Part 2: Be Exceptional! Business Model Innovation Insights 地利

  • Discover why Asian H.E.R.O. Innovators outperform to create value regardless of macroeconomic potholes and bumps and the innovations they introduce to make the bumps work for them – and how you can acquire the ability to adapt them to work for you and your team.
  • Learn why do two companies in similar industry with each earning the same absolute profit size differ vastly in their market value in the stock market.
  • Understand the surprising insight why sales, profit and tangible asset growth may not translate to market cap growth and the secrets to unlocking business valuation.

Part 3: Be a H.E.R.O.! CEO 2.0 人和

  • Master lessons in overcoming challenges, hardships and adversities from the leaders helming Asian H.E.R.O. Innovators who propelled some of today’s innovative next-generation companies to success. Avoid business mistakes of the decisions of H.E.R.O. Innovators.

Participants Profile:

JOIN US in this thriving community of serious entrepreneurs and value investors where we come together and profit from sharing ideas.

  • Business Owners, CEOsCFOs and company executives aspiring to scale new heights for their businesses and last the distance to lead a meaningful and successful life;
  • Finance professionalsaccountants, and non-financial professionals who are keen to enhance their understanding of business building and value investing principles for professional and personal use;
  • Scions of business owners who desire to sharpen their business and investment acumen, manage challenges in family business, wealth preservation and creation, and network with other entrepreneurs and senior managers.

About KB:

Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized investment management, investment advisory & research services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian equity fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Detecting Accounting Fraud in Asia as an official module at SMU. KB remains grateful to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community.

Selected media archives:

Scouring Accounting Footnotes to Prevent Tunneling Fraud, Business Times, 19 Aug 2015 (PDF)

Reforming Corporate Governance, Business Times, 25 Nov 2000 (PDF)

The Secret to Business Resilience: Be Like the Bamboo, Not the Oak, TODAY, 8 April 2013 (PDF)

Creating Bamboo Innovators in Singapore, Straits Times, 1 April 2013 (PDF)

管理狮城的狮子企业家 The Power of Vision, Business Times, 15 May 2000 & Lianhe Zaobao, 9 Aug 2010 (PDF)

Why ‘Democracy’ and ‘Drifter’ Firms Can Have Abnormal Returns: The Joint Importance of Corporate Governance and Accounting Quality in Separating Winners from Losers, Review of Social, Economic and Administrative Studies, Vol. 25 no. 1 (2011): 3-55. (PDF)

Are You a “First-Class Noticer” of Wide-Moat Compounders? Business Model Innovation & Investment Insights from Japan’s M3 Inc (Archive April 2015)

“Are you free now?” N asked me in a pensive mood when our paths crossed in a chance encounter in the underground basement of the Singapore Management University (SMU).

“Sure, what’s on your mind?”

“I have read your email on ‘To what can I devote my life’ last night and I have been thinking. I like to show you something. It’s an app business that I am doing up with my friend Chris.”

A SMU accounting student taking my course Accounting Fraud in Asia, N and his friend Chris have started a mobile app company which had developed an Uber-like mobile app to assist us to beat the long queues in healthcare clinics.

When I listened to N explaining his app, i immediately shared with him the Japanese innovator M3 Inc (2413 JP, MV $6.6bn). M3 is an overlooked wide-moat innovator I wrote about in 2012 and shared with the CEO and top management team of a listed tech company in a series of workshop “Uprising! Business Model Innovations and TMT Industry Trends” conducted in Singapore, HK and Beijing in 2012/13. M3 has since tripled to $6.6 billion. M3’s popular iTicket (www.iticket.co.jp) internet and mobile service used by more than 500,000 members to make reservations at clinics and beat the long queues might have some relevance for N to articulate the business model to seek funding – and clarity in their own execution and scalability. Both Chris and N have never heard of M3.

I explained briefly to them that M3 started out like a Google for medical professionals, with its core MR-kun service used as a marketing tool by pharmaceutical companies to provide consistent, repeated delivery of information on products and diseases. MR-kun also provides a channel for companies to receive questions and feedback from doctors, strengthening company/doctor relations.

With support by Sony Corp subsidiary So-Net which retains a 49.8% stake in M3, Itaru Tanimura established M3 in 2000 when he was 35. Essentially, M3 recognized that the demand for eDetails is quite high for busy physicians who require timely information at their convenience, without the limitations imposed by their off-line MRs. Doctors spend the most time collecting information via the Internet. Conversely, pharmaceutical firms spend the majority of their budget on MR related costs – and Japanese pharmaceutical firms’ huge marketing cost of ¥1.2-1.5tr ($10-12.5bn) is not sustainable.

Pharmaceutical companies signed up for MR-kun pay a basic annual fee of ¥70 to ¥100 million ($0.58 to 0.83 million) per electronic “e-detailing message,” which is the online equivalent of a sales visit by a MR (medical representative) to a physician’s clinic. In the pharmaceutical industry a sales visit by an MR to a doctor’s clinic is called a detail. M3 also charges fees for the production of promotional content and receives fees for other services such as facilitating the exchange of messages between pharma company MRs and their physician clients. The average of M3’s top five clients pays ¥860m ($7.2m) every year.

A dominant platform used by 80% of Japan’s physicians, MR-kun is rated by over 92% of its users who said its usage “deepened their knowledge of diseases”. With this intangible trust built up amongst the community of users, M3 is able to leverage this relationship with its members to develop new online tools. These include online tools in clinical trials to determine the feasibility of trials and help with patient recruitment, market research and survey panels, and online job search and career information site for member doctors and pharmacists. In China, M3’s membership for the healthcare professional portal site Medilive.cn topped one million members in August 2014 after just five years, covering roughly half of the physicians in China. M3 leveraged upon the media capacity of Medilive.cn to expand into “Messenger”, the Chinese version of MR-kun.

M3 even expanded from B2B to B2C by providing a range of services for consumers including AskDoctors.jp, a subscription service that gives patients a chance to ask doctors questions about their ailments, and iTicket.

M3’s Tanimura-san is what literary giant Saul Bellow would call a “first-class noticer”. Two entrepreneurs or value investors can study the same business model, watch the same video, or even take the same advice from a mentor, but the intensively-attentive and committed first-class noticer pick up critical details, opportunities and talents among noise that the other misses.

Building on Bellow’s term, Harvard’s business psychology expert Max Bazerman studied why some people notice and act on threats and opportunities while others do not. Bazerman identified three core challenges to being a first-class noticer: (1) Ambiguity, (2) Motivated blindness due to ego or vested self-interest, and (3) Conflict of interest with our desires influencing the way we interpret information, even when we are trying to be objective, and others that include the slippery slope and efforts of others to mislead us.

We develop noticing skills by acknowledging responsibility when things go wrong rather than blaming external forces beyond your control. Some character moves we can make to become first-class noticers:

·       Develop the introspection and capacity for observation to discover just how you learn and then to get out and do it.

·       Build in a process and attract people around you to challenge ambiguity, motivated blindness, and any conflict of interest to change you might have. Do it with intention. Intentionally establish a system to test your biases and comfortable assumptions.

·       Have a growth mindset that makes reinvention of yourself a regular way of life. Notice the signs. Find a way to embrace them rather than avoid them. Be self-accountable. Do it now.

Above all, the first-class noticer notices better because he or she cared more about their long-term journey than the shot-term paycheck. The intensive attentiveness is applied to a Purpose with an authentic Voice and the ability to engage others in shared meaning and to be truly aware of what’s going on in the world from wide-ranging and diverse sources of information. In the immortal words of leadership guru Warren Bennis, “the first-class noticer integrates a purpose with noble aims”. The first-class noticer devotes himself or herself to the Purpose and idea larger than themselves, being watchful and thankful. The word “watchful” is a legacy from the Old Testament – or a proactive sitting on a city wall and keeping watch. Watchmen were the first ones to see attacking armies or traveling traders. They saw things before others saw them.

One of the world’s greatest and most inspiring first-class noticer is Kazuo Inamori. Born into poverty, Kazuo Inamori lost his family home at age 13 and almost died that same year after contracting tuberculosis. A religious neighbour handed him several Buddhist religious tracts, urging him to meditate on the meaning of life. As he meditated, his TB subsided. His reprieve left Inamori with the idea that he should strive for the betterment of humanity.

Carrying this value in his heart, Dr. Inamori built two world-class companies from scratch in the course of a generation – global advanced ceramics company Kyocera (6971 JP, MV $20.6bn) (founded in 1959) and Japan’s second largest telecommunications firm KDDI(9433 JP, MV $62.8bn) (established in 1984), with a combined market capitalization of over $80 billion and employing over 80,000 kindred spirits. Through his commitment to society, which include the creation of the Nobel-class Kyoto Prize which honors contributors in technology, science, arts and philosophy by his Inamori Foundation, Inamori-san, 83, carries the voice of entrepreneurship on a global scale as the “Entrepreneur for the World”, an award he was presented with during the World Entrepreneurship Forum in 2009.

As president of Seiwajyuku, a business leadership association dedicated to nurturing business owners and entrepreneurs, Inamori-san, ordained as a Buddhist monk at 65, offered this advice to entrepreneurs:

“If your goal is to be a rich and beautiful celebrity, or if you are not willing to sacrifice yourself for the world and other people, do not try to be an entrepreneur. Entrepreneurs have heavy responsibilities and must share the fruits of their labor with employees and shareholders. We must always have criteria in our hearts that can help us answer the question, ‘What is the right thing to do as a human being?’ and guide us to do what is good for society and humanity in our daily work.”

After our chance encounter, N sent me an email that he aspires to build the “M3 of Southeast Asia”: “Uber became the one of the largest transport service company with no taxis. Alibaba became the world’s largest e-commerce company with no inventories. We hope our company can have a firm foothold in the medical industry without clinics”.

The medical industry needs high reliability because of its mission to care for the life of human beings. This is the reason why M3 succeeded with the trusted platform, the “emptiness” of the trust and support from the community of pharmaceutical firms, physicians, and patients to generate stable and continued income with the option value and potential to expand their business based on the trusted platform.

We wish N all the best in the pursuit of his aspiration – and to become a first-class noticer of business model innovations beyond the mere technical aspects of what makes a wide-moat compounder.

Warm regards,
KB

The ARCHEA Asia H.E.R.O. Innovators Fund (www.heroinnovator.com) is the only Asian SMID-cap tech-focused fund in the industry. H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners. The investment objective seeks to capture long-term investment returns created by disruptive forces and innovation by focusing on high-quality and liquid listed equities in the Asia-Pacific region that ride on and benefit from them. Through our cross-sector and in-depth fundamental research process, the Fund aim to provide access to companies whom we believe are run by high-integrity, honorable and far-sighted owner-operators with a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to create, expand and service their total addressable market, including the resiliency and balance sheet strength to maintain or grow profitability, pricing power and market positions through up/downturns in the economy.

The ARCHEA H.E.R.O. Innovators Tech Fund is a UCITS V fund domiciled in Luxembourg, and is available to both retail and accredited investors in Europe (including Switzerland, Germany, France, Denmark, Belgium, Luxembourg) and qualified offshore investors worldwide. UCITS stands for the Undertakings for the Collective Investment of Transferable Securities and is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory and investor protection requirements. The ARCHEA Asia HERO Innovators Fund is now in the pre-launch stage, subject to regulatory approval. We will also be registering the funds under MAS CISNET for distribution in Singapore. Our target fund launch date for the Founders’ Series is in September 2018.

Together with my highly experienced business partner Mr. Loo Cheng Guan, we are progressing in our partnership with our Swiss partner Dr. Alain Würgler’s Bellatrix Asset Management to launch the HERO Innovators Fund under their UCITS V umbrella fund structure domiciled in Luxembourg for distribution to retail & qualified investors in Europe, and qualified non-Europe investors worldwide. We have secured capital commitments from several institutional and high net-worth investors. Once we have gotten our ticker code and approval from the regulator for our UCITS fund, interested long-term partners can simply buy or sell units in the fund, just like the buying or selling of listed shares, by approaching any bank of your choice with the ticker code and wire the funds into an independent custodian bank. As a strictly regulated UCITS fund, there is daily liquidity to buy or sell, and we have zero exit fees. If you are interested to participate in the exponential growth of the H.E.R.O. Innovators who are solving real-world high-value problems and have helped create what the world around you looks like today and tomorrow, please contact KB by email or whatsapp.

How to Know If We are Right for Each Other? 

You are an intelligent high net-worth investor, business owner, family office, institutional investor, allocator, or financial advisor who want to:

  • You want to learn and be well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy, and feel more confident in your knowledge in how these innovators are indispensable in the well-being of your daily life.
  • Yet, you do not wish to follow the crowd like everyone else to herd in the highly popular mega-cap tech stocks.
  • And you definitely do not want to fall for the Next-Big-Thing trap by investing in fads, me-too imitators, cash-burning tech companies, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model, and you want to know how to distinguish between the true innovators and the swarming imitators.
  • You want to be proud of the entrepreneurs and owner-operators running the companies whom you invest in to generate sustainable returns, that they are honorable, high-integrity, far-sighted, and have a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to grow profitably through up/downturns in the economy.

Ready to find out more about H.E.R.O.?

To make an appointment with KB to find out more about the H.E.R.O. investment and business model innovation framework, investment strategy & process, please click here or email kb@heroinnovator.com or whatsapp +65 9695 1860.

How H.E.R.O. Innovators en-Japan, Chroma ATE, Innodisk, cultivate “sapere vedere” to develop the deep insights required to solving customers’ problems

H.E.R.O. HeartWare: Weekly Asia Tech News – 11 June (Issue 5)

When asked for his secret, Leonardo da Vinci would characteristically respond with the phrase he conceived and adopted as his personal motto: Sapere vedere. The phrase combines the Latin “sapere”, which means knowing how, and “vedere”, which means to see. Sapere vedere is knowing how to see. People with sapere vedere look forward as well as inward; they are capable of believing and seeing what others don’t. Knowing how to see, is crucial to living a life of significance. H.E.R.O. Innovators cultivate sapere vedere to develop the deep insights required to understanding and solving customers’ problems.

This week, Michikatsu Ochi, founder and chairman of en-Japan (TSE: 4849, market cap US$2.3bn), the pioneer in the field of Internet-based job advertising, shared how he looked inward and forward to pursue an unconventional entrepreneurial approach in disrupting then the incumbent giant rival Recruit Holdings by building its websites with a focus on users (job hunters) over its clients (companies looking to recruit staff). The superior quality of information on its sites produced with the user in mind and the attention to the detail has resulted in improved response rates to listed ads. Having created a positive cycle to increase membership (leveraging selling power, job listings, and market share), each time a heavy demand period comes around, the company can effectively use promotional spending to further improve its market position. Due to the difficult and tight hiring environment in Japan, without a certain number of applicants, companies cannot find suitable hires. en-japan provides companies with enough applicants, leading to higher prices in a positive feedback loop.

Leo Huang 黃欽明, Chairman & CEO of Chroma ATE 致茂電子 (TSEC: 2360, market cap US$2.2bn), one of the global leaders in automatic test equipment, including the global #1 leader in power electronics test solutions, shared Chroma’s competitive edge is its “insight into the customer’s next-step development and design solutions that will be provided to customers as early as possible before the customer goes into mass production.” Randy Chien 簡川勝, Chairman & President/CEO of Innodisk 宜鼎國際 (GTSM: 5289, market cap US$385m) one of the few memory module manufacturers in the world focused on non-consumer storage products such as industrial control, enterprise and aerospace defense applications, shared Innodisk’s competitive edge comes from the “power to understand the requirements of specialized markets and help accelerated the launching of our customers’ products. The industrial control market emphasizes customer service and customization, and the market is difficult to enter.”

This week in H.E.R.O. HeartWare: Weekly Asia Tech News (Click to Download PDF) with brief highlights of the inspiring entrepreneurial stories of tech leaders in Asia whom we have been monitoring over the past decade in our broader watchlist of around 200 listed Asian tech companies and our focused portfolio of 40 HERO Innovators, we have:

(1) Michikatsu Ochi 越智通勝, founder and chairman, and Takatsuga Suzuki 鈴木孝二, CEO of en-Japan (TSE: 4849, market cap US$2.3bn), the pioneer in the field of Internet-based job advertising with the launch of the first job information website in Japan in 1995;
(2) Leo Huang 黃欽明, Chairman & CEO of Chroma ATE 致茂電子 (TSEC: 2360, market cap US$2.2bn), one of the global leaders in automatic test equipment, including the global #1 leader in power electronics test solutions;
(3) Randy Chien 簡川勝, Chairman & President/CEO of Innodisk 宜鼎國際 (GTSM: 5289, market cap US$385m) one of the few memory module manufacturers in the world focused on non-consumer storage products such as industrial control, enterprise and aerospace defense applications;
(4) Tony Klim, CEO of Bravura Solutions (ASX: BVS, market cap US$546m), a leading provider of software solutions for the wealth management, life insurance, and funds administration industries with more than 350 direct and indirect blue-chip clients entrusting over A$2.8 trillion in assets to its platform systems.

We now live in an exponential world, and as the Baupost chief and super value investor Seth Klarman warns, disruption is accelerating “exponentially”. We believe tech-focused innovators are the most relevant investment trend and opportunity over the next decade. Yet we do not want to chase the highly popular megacap tech stocks, or fall for the “Next-Big-Thing” trap by chasing to invest in fads, me-too imitators, cash-burning start-up tech companies. We see a distinct opportunity in underappreciated Asian SMID-cap tech stocks with unique scalable business models run by high-integrity entrepreneurs with a higher purpose in solving high-value problems.

H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners at the ARCHEA Asia H.E.R.O. Innovators Fund, the only Asian SMID-cap tech-focused fund in the industry. The H.E.R.O. HeartWare Weekly highlights interesting tech news and listed Asian emerging tech innovators with unique and scalable wide-moat business models to keep yourself well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy in Asia as part of our thought leadership for our ARCHEA Asia HERO Innovators Fund to add value to our clients and the community.

Some of the HERO Innovators in the focused portfolio include the largest online-to-offline pet insurance company in Japan with over 60% domestic share of the growing pet insurance market with over 636,000 policies in force generating over 98% sticky recurring revenue income & cashflow (Japanese households own 20m pets and only 1.3m or 6.3% were insured vs 22% of the 15m pets were insured in UK), and is a tech innovator with services that include allowing insurance claims to be made via LINE in just three minutes, an industry first, enabled by its powerful database & analytical prowess of more than 10 million insurance claims tied to illnesses and accident that allow the company to propose preventive measures by examining how animals become sick and how accidents occur. This highly profitable online pet insurance with a healthy net-cash balance sheet founded by an inspiring and down-to-earth entrepreneur with an agricultural economics background who started his career at a top insurance company is an archetypal H.E.R.O. Innovator.

Hope you find the weekly report to be useful and insightful. Please give us your candid feedback and harshest criticisms so that we can improve further to serve you better. Besides the BATTSS (Baidu, Alibaba, Tencent, TSMC, Softbank, Samsung), do also tell us which Asian tech entrepreneurs & CEOs whom you admire and respect and why – we will endeavor to do up profiles of them for sharing with the community. Please email kb@heroinnovator.com on your thoughts, thank you very much. Have a beautiful week ahead.

Warm regards,
KB

The ARCHEA Asia H.E.R.O. Innovators Fund (www.heroinnovator.com) is the only Asian SMID-cap tech-focused fund in the industry. H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners. The investment objective seeks to capture long-term investment returns created by disruptive forces and innovation by focusing on high-quality and liquid listed equities in the Asia-Pacific region that ride on and benefit from them. Through our cross-sector and in-depth fundamental research process, the Fund aim to provide access to companies whom we believe are run by high-integrity, honorable and far-sighted owner-operators with a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to create, expand and service their total addressable market, including the resiliency and balance sheet strength to maintain or grow profitability, pricing power and market positions through up/downturns in the economy.

The ARCHEA H.E.R.O. Innovators Tech Fund is a UCITS V fund domiciled in Luxembourg, and is available to both retail and accredited investors in Europe (including Switzerland, Germany, France, Denmark, Belgium, Luxembourg) and qualified offshore investors worldwide. UCITS stands for the Undertakings for the Collective Investment of Transferable Securities and is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory and investor protection requirements. The ARCHEA Asia HERO Innovators Fund is now in the pre-launch stage, subject to regulatory approval. We will also be registering the funds under MAS CISNET for distribution in Singapore. Our target fund launch date for the Founders’ Series is in September 2018.

Together with my highly experienced business partner Mr. Loo Cheng Guan, we are progressing in our partnership with our Swiss partner Dr. Alain Würgler’s Bellatrix Asset Management to launch the HERO Innovators Fund under their UCITS V umbrella fund structure domiciled in Luxembourg for distribution to retail & qualified investors in Europe, and qualified non-Europe investors worldwide. We have secured capital commitments from several institutional and high net-worth investors. Once we have gotten our ticker code and approval from the regulator for our UCITS fund, interested long-term partners can simply buy or sell units in the fund, just like the buying or selling of listed shares, by approaching any bank of your choice with the ticker code and wire the funds into an independent custodian bank. As a strictly regulated UCITS fund, there is daily liquidity to buy or sell, and we have zero exit fees. If you are interested to participate in the exponential growth of the H.E.R.O. Innovators who are solving real-world high-value problems and have helped create what the world around you looks like today and tomorrow, please contact KB by email or whatsapp.

How to Know If We are Right for Each Other? 

You are an intelligent high net-worth investor, business owner, family office, institutional investor, allocator, or financial advisor who want to:

  • You want to learn and be well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy, and feel more confident in your knowledge in how these innovators are indispensable in the well-being of your daily life.
  • Yet, you do not wish to follow the crowd like everyone else to herd in the highly popular mega-cap tech stocks.
  • And you definitely do not want to fall for the Next-Big-Thing trap by investing in fads, me-too imitators, cash-burning tech companies, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model, and you want to know how to distinguish between the true innovators and the swarming imitators.
  • You want to be proud of the entrepreneurs and owner-operators running the companies whom you invest in to generate sustainable returns, that they are honorable, high-integrity, far-sighted, and have a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to grow profitably through up/downturns in the economy.

Ready to find out more about H.E.R.O.?

To make an appointment with KB to find out more about the H.E.R.O. investment and business model innovation framework, investment strategy & process, please click here or email kb@heroinnovator.com or whatsapp +65 9695 1860.

How Kyocera’s Kazuo Inamori Inspired Tech Innovators to Build TATERU and e-Guardian Into Successful, Purpose-Driven H.E.R.O. Businesses

A Purpose endures. Embracing a Purpose to serve others can provide the determination, inner strength, and courage we need to survive obstacles that might otherwise shatter our spirit.

Sometimes, we need guidance in defining our Purpose. Just like Daisaku Furuki who shared last week in HeartWare Issue 3 how he convinced himself to persevere in the face of deep troubles and anxieties to build the innovative apartment management platform TATERU (TSE: 1435) no matter how matter how painful it is when he read the book by Kazuo Inamori, the billionaire founder of Kyocera and KDDI, who elucidated the important idea of ‘Why start a business?’ – discovering what kind of value we want to create and contribute, finding and committing to a Purpose to serve. Today, TATERU has scaled up to a market cap of US$1.67bn and Daisaku’s 46.7% equity stake is worth over US$700m. This week in HeartWare Issue 4, Takatani Yasuhisa also shared how Kazuo Inamori’s book changed his life as he changed job from J&J to Kyocera after reading the book. Takatani later went on to undertake a MBO in one of Kyocera’s businesses to transform e-Guardian (TSE: 6050) into a successful cyber-security company with the ability to monetize its cutting-edge artificial intelligence technology via a recurring subscription-based revenue model to win and retain sticky customers in multiple industries.

Inamori-san also influenced my investment philosophy over the years in the relentless search to invest in honorable entrepreneurs when I first came across his quote: “If your goal is to be a rich and beautiful celebrity, or if you are not willing to sacrifice yourself for the world and other people, do not try to be an entrepreneur. Entrepreneurs have heavy responsibilities and must share the fruits of their labor with employees and shareholders. We must always have criteria in our hearts that can help us answer the question, ‘What is the right thing to do as a human being?’ and guide us to do what is good for society and humanity in our daily work.” This philosophy has also led us to our Big Why in doing up the H.E.R.O. Innovators Tech Fund, why we believe and care deeply in H.E.R.O. – to never stop exploring and learning in discovering and investing in the evergreen stories of emerging innovators who are willing to sacrifice to make significant contributions to others through the unique products and services they offer.

This week in H.E.R.O. HeartWare: Weekly Asia Tech News (Click to Download PDF) with brief highlights of the inspiring entrepreneurial stories of tech leaders in Asia whom we have been monitoring over the past decade in our broader watchlist of around 200 listed Asian tech companies and our focused portfolio of 40 HERO Innovators, we have:

(1) Takatani Yasuhisa 高谷康久, CEO of e-Guardian (TSE: 6050, market cap US$302m), the largest domestic cyber-security business in monitoring of posts on the internet with deep AI capabilities;

(2) Wang Shih-chung 王世忠, founder and CEO of AirTAC International Group (TSEC: 1590, market cap US$3.3bn), one of the global leaders in pneumatic components & equipment and the second largest in China, who shared how he endured seven consecutive years of losses to build AirTAC;

(3) Ian Black, CEO of Gentrack (NZSE: GTK, market cap US$414m) which provides billing and customer management software to utility companies and airports around the world;

(4) Hiroya Achiha and Kenjiro Kikuchi of NSK (TSE: 6471, market cap US$6.2bn), the world’s largest maker of ball screws, which are used to move objects back and forth with a high degree of precision, who shared how the 102-year old manufacturer is now undergoing a major shift as it supplies components critical to digital products and services and sales of components for chip-making machines and robot parts and the 3D NAND memory structural trend are helping to fuel earnings growth.

The H.E.R.O. HeartWare Weekly highlights interesting tech news and listed Asian emerging tech innovators with unique and scalable wide-moat business models to keep yourself well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy in Asia as part of our thought leadership for our ARCHEA Asia HERO Innovators Tech Fund, the only Asian SMID-cap tech-focused fund in the industry, to add value to our clients and the community.

Some of the HERO Innovators in the focused portfolio include the largest online-to-offline pet insurance company in Japan with over 60% domestic share of the growing pet insurance market with over 636,000 policies in force generating over 98% sticky recurring revenue income & cashflow (Japanese households own 20m pets and only 1.3m or 6.3% were insured vs 22% of the 15m pets were insured in UK), and is a tech innovator with services that include allowing insurance claims to be made via LINE in just three minutes, an industry first, enabled by its powerful database & analytical prowess of more than 10 million insurance claims tied to illnesses and accident that allow the company to propose preventive measures by examining how animals become sick and how accidents occur. This highly profitable online pet insurance with a healthy net-cash balance sheet founded by an inspiring and down-to-earth entrepreneur with an agricultural economics background who started his career at a top insurance company is an archetypal H.E.R.O. Innovator – H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners at the ARCHEA H.E.R.O. Innovators Tech Fund.

Hope you find the weekly report to be useful and insightful. Please give us your candid feedback and harshest criticisms so that we can improve further to serve you better. Besides the BATTSS (Baidu, Alibaba, Tencent, TSMC, Softbank, Samsung), do also tell us which Asian tech entrepreneurs & CEOs whom you admire and respect and why – we will endeavor to do up profiles of them for sharing with the community. Please email kb@heroinnovator.com on your thoughts, thank you very much. Have a beautiful week ahead.

Warm regards,

KB

The ARCHEA Asia H.E.R.O. Innovators Fund (www.heroinnovator.com) is the only Asian SMID-cap tech-focused fund in the industry. H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners. The investment objective seeks to capture long-term investment returns created by disruptive forces and innovation by focusing on high-quality and liquid listed equities in the Asia-Pacific region that ride on and benefit from them. Through our cross-sector and in-depth fundamental research process, the Fund aim to provide access to companies whom we believe are run by high-integrity, honorable and far-sighted owner-operators with a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to create, expand and service their total addressable market, including the resiliency and balance sheet strength to maintain or grow profitability, pricing power and market positions through up/downturns in the economy.

The ARCHEA H.E.R.O. Innovators Tech Fund is a UCITS V fund domiciled in Luxembourg, and is available to both retail and accredited investors in Europe (including Switzerland, Germany, France, Denmark, Belgium, Luxembourg) and qualified offshore investors worldwide. UCITS stands for the Undertakings for the Collective Investment of Transferable Securities and is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory and investor protection requirements. The ARCHEA Asia HERO Innovators Fund is now in the pre-launch stage, subject to regulatory approval. We will also be registering the funds under MAS CISNET for distribution in Singapore. Our target fund launch date for the Founders’ Series is in September 2018.

Together with my highly experienced business partner Mr. Loo Cheng Guan, we are progressing in our partnership with our Swiss partner Dr. Alain Würgler’s Bellatrix Asset Management to launch the HERO Innovators Fund under their UCITS V umbrella fund structure domiciled in Luxembourg for distribution to retail & qualified investors in Europe, and qualified non-Europe investors worldwide. We have secured capital commitments from several institutional and high net-worth investors. Once we have gotten our ticker code and approval from the regulator for our UCITS fund, interested long-term partners can simply buy or sell units in the fund, just like the buying or selling of listed shares, by approaching any bank of your choice with the ticker code and wire the funds into an independent custodian bank. As a strictly regulated UCITS fund, there is daily liquidity to buy or sell, and we have zero exit fees. If you are interested to participate in the exponential growth of the H.E.R.O. Innovators who are solving real-world high-value problems and have helped create what the world around you looks like today and tomorrow, please contact KB by email or whatsapp.

How to Know If We are Right for Each Other? 

You are an intelligent high net-worth investor, business owner, family office, institutional investor, allocator, or financial advisor who want to:

  • You want to learn and be well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy, and feel more confident in your knowledge in how these innovators are indispensable in the well-being of your daily life.
  • Yet, you do not wish to follow the crowd like everyone else to herd in the highly popular mega-cap tech stocks.
  • And you definitely do not want to fall for the Next-Big-Thing trap by investing in fads, me-too imitators, cash-burning tech companies, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model, and you want to know how to distinguish between the true innovators and the swarming imitators.
  • You want to be proud of the entrepreneurs and owner-operators running the companies whom you invest in to generate sustainable returns, that they are honorable, high-integrity, far-sighted, and have a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to grow profitably through up/downturns in the economy.

Ready to find out more about H.E.R.O.?

To make an appointment with KB to find out more about the H.E.R.O. investment and business model innovation framework, investment strategy & process, please click here or email kb@heroinnovator.com or whatsapp +65 9695 1860.

H.E.R.O. HeartWare: Weekly Asia Tech News – 11 June (Issue 5)

H.E.R.O. HeartWare: Weekly Asia Tech News – 11 June (Issue 5)

This week in H.E.R.O. HeartWare: Weekly Asia Tech News (Click to Download PDF) with brief highlights of the inspiring entrepreneurial stories of tech leaders in Asia whom we have been monitoring over the past decade in our broader watchlist of around 200 listed Asian tech companies and our focused portfolio of 40 HERO Innovators, we have:

(1) Michikatsu Ochi 越智通勝, founder and chairman, and Takatsuga Suzuki 鈴木孝二, CEO of en-Japan (TSE: 4849, market cap US$2.3bn), the pioneer in the field of Internet-based job advertising with the launch of the first job information website in Japan in 1995;
(2) Leo Huang 黃欽明, Chairman & CEO of Chroma ATE 致茂電子 (TSEC: 2360, market cap US$2.2bn), one of the global leaders in automatic test equipment, including the global #1 leader in power electronics test solutions;
(3) Randy Chien 簡川勝, Chairman & President/CEO of Innodisk 宜鼎國際 (GTSM: 5289, market cap US$385m) one of the few memory module manufacturers in the world focused on non-consumer storage products such as industrial control, enterprise and aerospace defense applications;
(4) Tony Klim, CEO of Bravura Solutions (ASX: BVS, market cap US$546m), a leading provider of software solutions for the wealth management, life insurance, and funds administration industries with more than 350 direct and indirect blue-chip clients entrusting over A$2.8 trillion in assets to its platform systems.

We now live in an exponential world, and as the Baupost chief and super value investor Seth Klarman warns, disruption is accelerating “exponentially”. We believe tech-focused innovators are the most relevant investment trend and opportunity over the next decade. Yet we do not want to chase the highly popular megacap tech stocks, or fall for the “Next-Big-Thing” trap by chasing to invest in fads, me-too imitators, cash-burning start-up tech companies. We see a distinct opportunity in underappreciated Asian SMID-cap tech stocks with unique scalable business models run by high-integrity entrepreneurs with a higher purpose in solving high-value problems.

H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners at the ARCHEA Asia H.E.R.O. Innovators Fund, the only Asian SMID-cap tech-focused fund in the industry. The H.E.R.O. HeartWare Weekly highlights interesting tech news and listed Asian emerging tech innovators with unique and scalable wide-moat business models to keep yourself well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy in Asia as part of our thought leadership for our ARCHEA Asia HERO Innovators Fund to add value to our clients and the community.

Some of the HERO Innovators in the focused portfolio include the largest online-to-offline pet insurance company in Japan with over 60% domestic share of the growing pet insurance market with over 636,000 policies in force generating over 98% sticky recurring revenue income & cashflow (Japanese households own 20m pets and only 1.3m or 6.3% were insured vs 22% of the 15m pets were insured in UK), and is a tech innovator with services that include allowing insurance claims to be made via LINE in just three minutes, an industry first, enabled by its powerful database & analytical prowess of more than 10 million insurance claims tied to illnesses and accident that allow the company to propose preventive measures by examining how animals become sick and how accidents occur. This highly profitable online pet insurance with a healthy net-cash balance sheet founded by an inspiring and down-to-earth entrepreneur with an agricultural economics background who started his career at a top insurance company is an archetypal H.E.R.O. Innovator.

Hope you find the weekly report to be useful and insightful. Please give us your candid feedback and harshest criticisms so that we can improve further to serve you better. Besides the BATTSS (Baidu, Alibaba, Tencent, TSMC, Softbank, Samsung), do also tell us which Asian tech entrepreneurs & CEOs whom you admire and respect and why – we will endeavor to do up profiles of them for sharing with the community. Please email kb@heroinnovator.com on your thoughts, thank you very much. Have a beautiful week ahead.

Warm regards,
KB

The ARCHEA Asia H.E.R.O. Innovators Fund (www.heroinnovator.com) is the only Asian SMID-cap tech-focused fund in the industry. H.E.R.O. stands for “Honorable. Exponential. Resilient. Organization.” and is operationalized into a unique, systematic 4-step investment process to identify the winners. The investment objective seeks to capture long-term investment returns created by disruptive forces and innovation by focusing on high-quality and liquid listed equities in the Asia-Pacific region that ride on and benefit from them. Through our cross-sector and in-depth fundamental research process, the Fund aim to provide access to companies whom we believe are run by high-integrity, honorable and far-sighted owner-operators with a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to create, expand and service their total addressable market, including the resiliency and balance sheet strength to maintain or grow profitability, pricing power and market positions through up/downturns in the economy.

The ARCHEA H.E.R.O. Innovators Tech Fund is a UCITS V fund domiciled in Luxembourg, and is available to both retail and accredited investors in Europe (including Switzerland, Germany, France, Denmark, Belgium, Luxembourg) and qualified offshore investors worldwide. UCITS stands for the Undertakings for the Collective Investment of Transferable Securities and is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory and investor protection requirements. The ARCHEA Asia HERO Innovators Fund is now in the pre-launch stage, subject to regulatory approval. We will also be registering the funds under MAS CISNET for distribution in Singapore. Our target fund launch date for the Founders’ Series is in September 2018.

Together with my highly experienced business partner Mr. Loo Cheng Guan, we are progressing in our partnership with our Swiss partner Dr. Alain Würgler’s Bellatrix Asset Management to launch the HERO Innovators Fund under their UCITS V umbrella fund structure domiciled in Luxembourg for distribution to retail & qualified investors in Europe, and qualified non-Europe investors worldwide. We have secured capital commitments from several institutional and high net-worth investors. Once we have gotten our ticker code and approval from the regulator for our UCITS fund, interested long-term partners can simply buy or sell units in the fund, just like the buying or selling of listed shares, by approaching any bank of your choice with the ticker code and wire the funds into an independent custodian bank. As a strictly regulated UCITS fund, there is daily liquidity to buy or sell, and we have zero exit fees. If you are interested to participate in the exponential growth of the H.E.R.O. Innovators who are solving real-world high-value problems and have helped create what the world around you looks like today and tomorrow, please contact KB by email or whatsapp.

How to Know If We are Right for Each Other? 

You are an intelligent high net-worth investor, business owner, family office, institutional investor, allocator, or financial advisor who want to:

  • You want to learn and be well-informed about disruptive forces and innovation, new technologies and new business models coming up, and the companies that ride on and benefit from them in some of the most promising areas of the economy, and feel more confident in your knowledge in how these innovators are indispensable in the well-being of your daily life.
  • Yet, you do not wish to follow the crowd like everyone else to herd in the highly popular mega-cap tech stocks.
  • And you definitely do not want to fall for the Next-Big-Thing trap by investing in fads, me-too imitators, cash-burning tech companies, or even in seemingly cutting-edge technologies without the ability to monetize and generate recurring revenue with a sustainable and scalable business model, and you want to know how to distinguish between the true innovators and the swarming imitators.
  • You want to be proud of the entrepreneurs and owner-operators running the companies whom you invest in to generate sustainable returns, that they are honorable, high-integrity, far-sighted, and have a higher sense of purpose in solving High-Value Problems for their target customers and society, and have unique, scalable and wide-moat business models with sustainable competitive advantages and innovative products, services, and processes to grow profitably through up/downturns in the economy.

Ready to find out more about H.E.R.O.?

To make an appointment with KB to find out more about the H.E.R.O. investment and business model innovation framework, investment strategy & process, please click here or email kb@heroinnovator.com or whatsapp +65 9695 1860.

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