Cadence Capital Limited returned a negative gross performance of 2.3% in December, outperforming the All Ordinaries Accumulation Index by 1.0% for the month. Year to date the fund is up 3.9%, compared to the All Ordinaries Accumulation Index which is up 9.6% for the same period. The largest detractors from performance during the month were Syrah Resources, Renascor Resources, Citi Chic Collective, Life360 and Tietto Minerals. The top contributors to performance were Melbana Energy, Sayona Mining, Health and Happiness International, New Hope Corp and Terracom.
Markets declined through December following the gains recorded in the previous two months, continuing the pattern of volatility seen through much of 2022. This month saw defensive and large-cap style companies outperforming while technology and EV battery metal related stocks were sold off. As such, the fund’s holdings across graphite related companies such as Syrah Resources and Renascor Resources detracted from performance in December however have contributed positively to returns in recent months. A further downgrade from City Chic Collective also impacted performance despite the company trading at a discount to its net working capital. Coal equities on the other hand recovered through the month in line with the coal price. This remains a trend we are monitoring closely.
The re-opening of the Chinese economy continued to gain traction through the month, with the fund increasing its holdings across Health & Happiness, A2 Milk, Tencent and Alibaba as these share prices recovered from depressed levels. The portfolio has also been scaling into trends that have been emerging in precious metals such as Bellevue Gold, St Barbara and Chalice Mining.
Fully Franked Dividends Declared Since Listing
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Top 20 Portfolio Positions
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Karl Siegling has recently been interviewed on the following shows:
- Andrew Geoghagen interviewed Karl Siegling on Ausbiz 16 Dec 2022 (Click here to watch)
- Andrew Geoghagen interviewed Karl Siegling on Ausbiz 9 Dec 2022 (Click here to watch)
- Andrew Geoghagen interviewed Karl Siegling on Ausbiz 2 Dec 2022 (Click here to watch)
To view all previous Cadence webcasts and interviews please visit the Media Section of the website.
Cadence Capital Limited held its AGM and Investor Briefing on the 16 November 2022. Karl Siegling started the Investor Briefing by giving an update on the performance of the funds, discussed the changes in the portfolio and talked about some important changes in market trends. Karl Siegling, Jackson Aldridge and Charlie Gray then discussed a number of current long and short positions in the funds. Karl Siegling closed with the outlook for 2023. Click here to view this Investor Briefing.
We encourage you to visit our 52 books you should read before buying your next stock page on our website. We have compiled a list of books/ documentaries that have influenced our investment style or helped provide insight into the Cadence investment process.