Cadence Capital Limited was down 1.8% in November, compared to the All Ordinaries Accumulation Index which was down 0.3% for the month. Financial year to date the fund is up 13.3% outperforming the All Ordinaries Accumulation Index by 11.4%. The largest detractors from performance during November were Betmakers, Upstart, Asana, Sofi Technologies and Peloton Interactive. The top contributors to performance were Life360, Uniti Group, DigitalOcean and TMC The Metals Company.
In recent weeks there has been a marked increase in volatility in markets. Despite muted performance in indexes, underneath the surface smaller-capitalisation companies and higher-beta style stocks are down significantly while larger capitalisation and lower-beta style investments have performed well. For the portfolio, this has led to a reasonable level of turnover and adjustment of the portfolio leading to higher levels of cash as well as several new investments entering the fund. Liquidity within the fund remains high, with 90% of the portfolio able to be liquidated within one week.
Cadence Capital Limited held its AGM and Investor Briefing on the 1st December 2021. At the Investor Briefing, Chairman Karl Siegling started by giving an update on the company’s performance, dividends and profits reserves balances and CDM’s current portfolio structure. Portfolio managers Jackson Aldridge and Charlie Gray then discussed a number of the company’s current holdings. Karl Siegling closed with the outlook for 2022. Click here to view this Investor Briefing.
* Gross Performance: before Management and Performance Fees
Fully Franked Dividends Declared Since Listing
* Off market equal access buy back
Historic Portfolio Exposure
Portfolio Sector Analysis
Top 20 Portfolio Positions
Portfolio Market Capitalisation Analysis
CDM was one of the 26 LIC’s that appeared in the form guide for the Affluence LIC Cup that came out around the Melbourne Cup. Daryl Wilson, CEO/Portfolio Manager of Affluence Funds Management mentioned CDM as “Another runner that has hit good form this year, though has come off the boil slightly in recent times. Like many horses we rate, the jockey is a part-owner, which always adds extra incentive to win. A big momentum runner, and if it hits top speed, can be an absolute flyer. Another one to watch.”
Listen to Karl Siegling being interviewed by Henry Jennings from Marcus Today. on his show “On The Couch” where they discuss Cadence Capital Limited (ASX Code: CDM).
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