Cadence Capital Limited returned a gross performance of 11.8% in September, compared to the All Ordinaries Accumulation Index which was down 1.6% for the month. Financial year to date the fund is up 18.7% outperforming the All Ordinaries Accumulation Index by 16.7%. The top contributors to performance during September were TMC The Metals Company, Upstart Holdings, Whitehaven Coal, Asana, DigitalOcean, Cettire and Paladin Energy. The largest detractors from performance were Resimac and Uniti Group.
In August the Company announced its full year results declaring a 3.0 cents fully franked final dividend. The Ex-Date for the dividend is the 18th October 2021 and the payment date is the 29th October 2021.
TMC The Metals Company and Proposed Demerger Update
At the time of writing this newsletter the TMC position currently represents around 5.5% of the net tangible assets of the Company and is no longer the largest position in the Portfolio. CDM has announced that one third of the TMC position was not subject to escrow and has already been sold, realising approximately 7 times the cost of the investment. This one third sale alone has realised approximately 2.5 times the cost on the entire investment.
On the 20th September 2021 CDM released a detailed presentation on TMC and the proposal to demerge TMC into a separately listed vehicle. Since that date we have sold one third of the TMC position realising a large profit and increasing fund cash levels. In light of the current position size of TMC, as outlined above, the Board has determined that it is not necessary to demerge the TMC asset at this stage as it does not represent a concentration risk within the portfolio. The current TMC price represents a price over 5 times higher than our original entry price.
CDO ASX Listing
The Board of Cadence Opportunities Fund has announced that CDO will IPO on the ASX in November 2021. CDO and CDM shareholders and Cadence newsletter subscribers will receive a Priority Allocation in the IPO which is limited to a maximum raise of $52M. (Click here for a copy of the Prospectus) Once the offer opens on the 13 October 2021, Boardroom registries will send out personalised Priority Application Forms with unique Entitlement Numbers. Over the coming week we will be releasing a Webcast that discusses the upcoming IPO of CDO.
* 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
In September and October CDM released several ASX announcements that discussed our investment in TMC US. See ASX announcements from 10th September, 13th September, 20th September, 24th September, 27th September and 7th October.
On the 17th August 2021 the company released its June 2021 Year end Audiocast. In this audiocast, Karl Siegling firstly provides an update on the Company’s record full year results, fully franked final dividend and the portfolio composition. Charlie Gray and Jackson Aldridge then discuss a few of the Company’s investments. Karl Siegling finishes with an update on Deepgreen Metals and the outlook for 2021.
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. To view all previous Cadence webcasts and press articles, please visit the Media Section of the website.