ROAR Update

Dear investors and well-wishers,

Lion Active ETF (ROAR) returned 3.5% net in June. Our monthly factsheet is available here.

You’ll notice a few names we haven’t written about before.

The largest equity exposure was in healthcare.

Omada Health is a virtual care provider helping patients manage chronic conditions such as diabetes, obesity, hypertension and musculoskeletal pain from home, connecting devices, clinicians, and advice in one platform. They’re paid by insurance companies to improve outcomes.

We’ve seen many riffs on this theme, but are encouraged by their strong traction (51% member growth and 42% revenue growth year-over-year in their latest quarter) and while the company is not GAAP profitable, the operating leverage is clear:

Billiontoone (BLLN) is a fast growing company (revenue +84% year-on-year) using highly sensitive DNA sequencing to detect genetic signals, with the core products Unity, a prenatal tset assessing chromosomal abnormalities and inhereted recessive diseases from a single maternal blood sample (father not required) and its Northstar liquid biopsy platform analysing tumour dNA in the blood to direct and monitor cancer treatment.

The key differentiator is their ability to measure extremely small quantities of DNA with single-molecule precision. As always, it’s execution that matters to us most, and in a crowded space, BLLN is taking market share:

ASPs are growing, COGS-per-test is steady, so margins are increasing:

The company is GAAP net income profitable and raised guidance in their latest report.

Agios Pharmaceuticals turned up on our screens as a fast-growing company. There’s a sweet spot post regulatory approval, post initial revenue, where the company has proven science, proven traction, and an opportunity to expand its franchise. Often drugs that prove effective and safe in one area can be expanded into adjacent conditions, particularly as companies often start with a subset of their target market.

Agios is a rare-disease biotech built around activating pyruvate kinase, an enzyme that helps red blood cells produce energy and survive longer. Its lead drug, mitapivat, is already commercialised as Pyrukynd for pyruvate kinase deficiency and has now expanded into the much larger thalassemia market, while the FDA is reviewing it for sickle cell disease under Priority Review.

In line with the above, the hope is that Agios can use one oral drug across several genetically distinct anaemias and build a rare-disease franchise, rather than just be a single-product company, though of course there is risk around this and there are many players in the space. In the March 2026 quarter, product revenue increased 138% to US$20.7 million, but Agios remained heavily loss-making, with a US$99.1 million net loss as it funded launches and a broad clinical pipeline. The balance sheet is strong with ~US$1.0 billion of cash and equivalents.

Amphenol is one of the better performing semiconductor beneficiaries, though you don’t seem to hear about it as much. From their latest quarterly update:

Broadly, we have waited for our quant system to generate fresh buy signals in semiconductors, which has kept the Fund out of many semiconductor names that we might otherwise own. We do hold positions in some of the larger companies like Amphenol, Nvidia, Broadcom and Taiwan Semiconductor.

Please note that we may change any of these holdings at short notice!

Rubrik is the only software name in our top 10 at 30 June. It’s clear there’s already been a SAAS recovery… for the right names, notably those in security, networking, databses, and direct beneficiaries of the enormous amounts of data generated by agentic workflows.

Application software names have certainly steadied, with many of the most beaten down companies like Atlassian and Figma bouncing off lows, but so far a sustained recovery hasn’t taken place. These are the companies most under threat. Our best guess is that the companies that maintain growth stage at least a partial recovery later in the year, but so far capital is being sucked into semiconductor buildout, and rapid recent advances have rehighlighted the threat to these companies.

Outlook

From here we are focused on keeping our portfolio positions small, and holding a diverse range of growth companies with 2-3% initiation weights. At the moment semiconductors, SAAS, and healthcare (as well as consumer names) are moving relatively independently. These are our largest factor/sector exposures.

We will release a factsheet like this to the ASX monthly, quarterly positions (position statement from 30 June is currently under review and will be released shortly), and of course we have daily sector and cash holdings, typically with a 2-3 day delay. The latest version can be found here. This is a live link so will change, but as of 23 July 2026 our cash and equivalents holdings were ~31%.

There has been a sell-off in semiconductors over the past few weeks (see latest our latest Frazis Fund update). If the sector stabilises this will be our primary focus in deploying that cash… but the range of possible outcomes in semiconductors is particularly broad right now, and our entry points will be quant-driven.

Good luck out there

Michael

Disclaimer

This material is issued by Lioncrest Partners Pty Ltd (ACN 677 520 473), a Corporate Authorised Representative (CAR 001315184) of Frazis Capital Management Pty Ltd (ABN 91 638 965 910, AFSL 521445). 

The Frazis Fund operates a different strategy and risk/return profile to the Lion Active ETF (ASX: ROAR) and is available to wholesale clients only (as defined in s761G/s708 of the Corporations Act). Any Frazis Fund performance shown is that fund's history only, it is not the performance of ROAR, which has limited operating history. Past performance is not a reliable indicator of future performance and returns are not guaranteed.

The Lion Active ETF (ARSN 685 354 518) is issued by K2 Asset Management Ltd (ABN 95 085 445 094, AFSL 244 393). Offers are made only under the PDS. This is general information only and does not take into account your objectives, financial situation or needs. Consider the PDS and Target Market Determination, and seek advice from a qualified financial adviser, before making any investment decision. Investments carry risk, including possible loss of capital and currency risk. Information is current as at 31 May 2026 and subject to change. 

The Lion Active ETF PDS is available at www.lioncrestpartners.com/pds.