Cadence Opportunities Fund was up 0.1% in April, compared to the All Ordinaries Accumulation Index which was down 0.8% for the month. For the 10 months ended 30 April 2022 the fund is up 19.4% outperforming the All Ordinaries Accumulation Index by 14.0%. For April the top contributors to performance were Whitehaven Coal, Stanmore Coal, Coronado Global Resources and Terracom. The largest detractors from performance were Journey Energy and Melbana Energy.
Financial markets remained volatile through April, with Australia again materially outperforming its international peers. For example, the S&P 500 and NASDAQ were down 8.8% and 13.0% in April respectively. Cash levels in the fund increased towards the end of the month as positions were exited that broke trend and as shorts were added to. This activity has continued in early May as markets have continued to fall with the portfolio currently holding around 40% cash. The fund’s ability to move into high levels of cash in markets that are trending down is an important tool in preserving our capital and maintaining buying power to scale into new investment opportunities that meet our criteria.
Fully Franked Half Year Dividend
The Company’s 7.5 cents fully franked half year dividend was paid out on the 14 April 2022. This interim dividend equates to a 5.1% annualised fully franked yield or a 7.3% gross yield (grossed up for franking credits) on the share price on the date of the announcement of $2.94 per share. After paying this dividend the Company still has more than 50 cents per share of profits reserves to pay future dividends
In the coming weeks we will be releasing our quarterly audiocast which will give an update on the Company’s performance, the portfolio’s composition, its current investment themes and holdings, and the outlook for the rest of the year.
Historic Portfolio Exposure
Portfolio Sector Analysis
We recommend that you watch the December 2021 half year Audiocast where Karl Siegling firstly provides an update on the Company’s half year results, fully franked interim dividend and the portfolio’s composition. Charlie Gray and Jackson Aldridge then discuss the Company’s trading statistics, some investment themes and positions held. Karl Siegling finishes with an update on the outlook for 2022.
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.