Blake Henricks, co-founder of Sydney-based Firetrail Investments, has been actively investing in recent initial public offerings (IPOs) for his $437 million Australian High Conviction Fund. Firetrail Investments is a boutique fund manager that invests across a range of strategies including small-caps, global stocks, and long-short funds. The firm now manages $4.7 billion.
Firetrail participated in Virgin Australia’s float, citing the airline’s management team and conservative earnings assumptions. Henricks noted the unique advantages of the Australian domestic aviation market, where third and fourth players have historically struggled. The fund also invested in Greatland Resources, an Andrew Forrest-backed gold producer, although the stock’s performance has been impacted by a production guidance cut. Henricks believes the share price reaction to the downgrade is overdone but recognises the company needs to regain investor trust.
The fund manager expressed enthusiasm for GemLife’s IPO, a developer of over-50s communities, where Firetrail has emerged as a significant backer. Henricks appreciates that GemLife is a second-generation family-run business with a vertically integrated structure. Despite some challenges with Greatland, the High Conviction Fund has performed well, returning 17.5 per cent in the 2025 financial year, surpassing the ASX 200 Accumulation Index’s 13.8 per cent gain.
Henricks highlighted Life360, the family safety app, as a standout performer due to its subscriber growth and potential for increased advertising revenue. The fund also holds Cochlear, anticipating the success of its Nexa hearing implant. Additionally, Firetrail maintains a position in Santos, viewing gas as crucial to the energy transition and expressing confidence in the approval of a potential takeover bid from XRG.
