Australian Equity Long Short, JCP Investment Partners

Jai Mirchandani

Australian Equity Long Short

Combining the art and science of investing

JCP Investment Partners

JCP is a research-driven, fundamental Australian Equities investment manager. We were founded in 1998 and are 100% owned by our employees, directors and associates. With almost 20 years of organisational experience we have a proven performance record in both bull and bear markets. Our alignment policy is based on the principles of employee ownership and co-investment.

We recognise the value in retaining an experienced and stable team, together with operating within a theoretically robust and proven investment framework. At the heart of our investment process is our commitment to maintaining a large ‘in-house’ research team, which is supplemented by proprietary external research. 

Our competitive advantage lies in our ability to combine the art and science of investing, providing an edge that is difficult for other investors to replicate.  

Our business strategy is to deliver long-term excess returns to our clients and maximise returns to our shareholders, within an entrepreneurial culture that allows our employees to achieve their full potential.
JCP’s proprietary investment platform allows for efficient processing of our research insights, and more efficient idea generation through our smart optimisation platform.  We then combine this with a sensible qualitative overlay through the experience and ‘gut feel’ of our Portfolio Construction team. 

We believe the sophistication of our process is a source of enduring competitive advantage, enabling us to continue to generate long-term excess returns for our clients. The flexibility and scalability of our resources, provide us with the tools to have meaningful conversations with our clients about their needs and how we can create solutions to better meet these needs.

JCP holds Australian Financial Services Licence No. 247132.

Equity Bottom-Up

With <a href="https://www.smartkarma.com/entities/918" target="_blank" data-smartkarma-citation="entities:918:1">Cochlear Ltd (COH AU)</a> having such a high share of the cochlear implant market (~60% share in a 3 player market), the obvious question is when we might see increased competition and a rebasing of market share to an equal level. See <a href="https://www.smartkarma.com/insights/expensive-quality-but-worth-being-there" target="_blank" data-smartkarma-citation="insights:13437">Expensive Quality, but Worth Being There</a> for more detail on cochlear implant market and share.All major manufacturers have released new products or features in the last 12 months. But feedback from audiology professionals suggests that market share for new patients shouldn’t be driven by sound processor features due to lack of sufficient differentiation. However, new sound processor launches may drive existing implant recipients to upgrade their sound processor, driving revenue and profit growth for the manufacturers. The increased choice in products and features may also drive higher levels of market growth by appealing to more patients in what is an under-penetrated market.In FY17 <a href="https://www.smartkarma.com/entities/918" target="_blank" data-smartkarma-citation="entities:918:1">Cochlear Ltd (COH AU)</a> released 3 sound processors: Kanso, Baha 5 and Nucleus 7 (from September 2017) and a cochlear implant, the CI532. We will focus on Kanso, Nucleus 7 and CI532 in this report.

With Cochlear Ltd (COH AU) having such a high share of the cochlear implant market (~60% share in a 3 player market), the obvious question is when we might see increased competition and a rebasing of market share to an equal level. See Expensive Quality, but Worth Being There for more detail on cochlear implant market and share.All major manufacturers have released new products or features in the last 12 months. But feedback from audiology professionals suggests that market share for new patients shouldn’t be driven by sound processor features due to lack of sufficient differentiation. However, new sound processor launches may drive existing implant recipients to upgrade their sound processor, driving revenue and profit growth for the manufacturers. The increased choice in products and features may also drive higher levels of market growth by appealing to more patients in what is an under-penetrated market.In FY17 Cochlear Ltd (COH AU) released 3 sound processors: Kanso, Baha 5 and Nucleus 7 (from September 2017) and a cochlear implant, the CI532. We will focus on Kanso, Nucleus 7 and CI532 in this report.

Cochlear Ltd

COH's New Product Launches