Cadence Opportunities Fund

INVESTMENT UPDATE

OCTOBER 2018

For the month of October 2018, Cadence Capital Limited returned a negative gross performance of 9.4%, compared to a decrease in the All Ordinaries Accumulation Index of 6.5%. October was a volatile month with global markets recording the worst monthly return since 2012. Market participants are grappling with the prospect of increasing US interest rates against the relatively strong economic growth backdrop. The fund’s underperformance was driven primarily by its holdings in a number of small and mid-capitalization companies, with the Small Ordinaries Accumulation Index down 9.6% during the month. In our September 2018 Quarterly Webcast a detailed update was given on ARQ group. At our upcoming AGM and Investor Briefing (see details below) we will be giving a detailed update on this holding and will also be discussing some other large holdings.

Our AGM and Investor Briefing will be held at the Museum of Sydney, Warrane Theatre, Corner of Bridge and Phillip Streets, Sydney, NSW 2000 at 2:00pm (AEDT) on Thursday 22nd November 2018. If you would like to dial into the AGM remotely, please click here to register.

Fund NTA

Fund Performance


* Gross Performance: before Management and Performance Fees

CDM Share Price and Option Returns plus Dividends & Franking

Fully Franked Dividends Declared Since Listing

* Off market equal access buy back

Historic Portfolio Exposure

Portfolio Sector Analysis

 

Top Portfolio Position

 

Recent News

We are pleased to announce that the Prospectus is now open for Cadence Opportunities Fund (ASX:CDO).  All CDM shareholders and newsletter readers have a priority offer to this IPO. Please feel free to watch a short introductory Webcast about this fund and read the Independent Investment Research (IIR) report, which has a Recommended rating. The Fund will have a greater focus on shorter-term price trends than CDM and will look to capture alpha from these shorter-term price trends. Whilst the CDO prospectus is open CDM will be announcing its NTA to the ASX on a weekly basis.

In October we released our September 2018 Webcast, Karl Siegling discusses the company’s performance, including a detailed review of two current positions in the portfolio, ARG Group (ASX:ARQ) and Teva Pharmaceutical Industries (NYSE:TEVA).

Karl Siegling warns “Australian banks are on a slide and investors should keep their distance as the industry reaches, maximum pessimism” in an interview with RFI Group’s, Lucas Baird.

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 investment process. To view all previous Cadence webcasts and press articles, please visit the Media Section of the website.

We welcome any of your friends or colleagues that you feel may benefit from our monthly Cadence Capital Limited Newsletter. Please click here to refer a friend by supplying their name and email address.

 

Riding the Resources and Mining Services Tailwinds
  • The inter-relationship between commodity prices, resource and mining services company profits
  • The mining services cycle
  • Where we are in the cycle?
  • Examples of recent mining services investments:
    • Emeco Holdings (ASX: EHL)
    • Macmahon Holdings (ASX: MAH)
    • Boom Logistics (ASX: BOL)

Cadence Capital Limited (ASX: CDM) is one of Australia’s top performing Listed Investment Companies.