Roshan Padamadan presented his in-depth investment thesis on Fidessa Group (London: FDSA) at European Investing Summit 2017.

Fidessa is a leading provider of sell-side trading software. MiFID II is changing the way trading and research will be done in the future, making it more important to have provable information on what was spent on execution and what was set aside for research. With a dividend yield of 3.5+% and close to 90% in recurring revenue, Fidessa has a stable base, with potential for growth. Economies of scale apply to software service providers, as the players with relatively large market share enjoy abnormal profit margins due to fixed development costs being spread over a large user base. Cloud and SaaS make such software easy to deploy and monetize. The moat is in the switching cost (due to inconvenience) and efficient scale as well. The market is not large enough to entice a large player to try to displace Fidessa. The entry barrier of high one-off software development costs, and getting customers to re-train, makes it hard to unseat Fidessa, which enjoys a defensible position in sell-side trading software.

About the instructor:

Roshan Padamadan serves as chairman of Luminance Capital, which specialises in consulting for hedge funds. He previously ran a global unconstrained investment strategy, looking at special situations and deep value. Prior to launching Luminance in 2013, Roshan spent more than seven years with the HSBC Group, including more than three years with HSBC Asset Management, as a Product Specialist. He worked for the highly commended Offshore Indian Equity team which ran US$5+ billion from Singapore, including a US$100+ million award-winning India hedge fund. Roshan has earned an MBA in Management from Indian Institute of Management, Ahmedabad. He holds the CFA, FRM and CAIA charters and speaks over five languages.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form: