Cadence Capital Limited returned a gross performance of 2.3% during July 2019. Stocks that contributed positively during the month were Bingo Industries, Eclipx Group, Resimac Group, Strike Energy and Treasury Wine Estates. The largest detractor for the month was Ausnutria Dairy. Over the past six months the Company has added to several new positions which have been performing well, with the overall diversification and liquidity of the portfolio having improved significantly.
In the upcoming weeks the Company will release its full year results and its year-end webcast. This detailed year-end webcast will give shareholders an update on the fund’s performance, current top positions and an outlook for the year ahead. During September 2019 we will be holding investor presentations in major cities around Australia. We will announce full details of these investor presentations later this month.
The largest factor affecting the CDM share price over recent times has been the move from trading at a premium to NTA to a discount to NTA. This move from premium to discount has been twice as large as the negative performance of the fund. A change in investor psychology has resulted in a share price fall greater than actual losses incurred. We believe this presents an opportunity for investors to purchase a Listed Investment Company with a good long-term track record and fully franked dividends at a discount to NTA.
At 31st July 2019, the Company was 73.7% invested.
* Gross Performance: before Management and Performance Fees
CDM Share Price and Option Returns plus Dividends & Franking
Fully Franked Dividends Declared Since Listing
Historic Portfolio Exposure
Portfolio Sector Analysis
Top Portfolio Position
** A Pre-IPO investment in the Materials sector
Cadence Capital Limited (CDM) was highlighted as a Listed Investment Company (LIC) to watch in the Bell Potter Research article on Livewire Markets titled Looking for opportunity in LIC land. This article discusses the potential investment opportunities presented where a LIC’s share price is trading at a discount to its NTA.
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