Cadence Opportunities Fund returned a gross performance of -1.6%, compared to the All Ordinaries Accumulation Index which was up 3.7% for the month. The largest detractors from performance during November were Resolute Mining, Westgold Resources, Clearview Wealth, West African Resources and Evolution Mining. The top contributors to performance were Echo IQ, Netflix, QBE Insurance, Alcoa and IperionX.
Gold fell in the month of November 2024 and as a result gold stocks fell more than the gold price fall. The fall in the gold price is after a substantial rise in price in calendar year 2024 as outlined in our recent Annual General meeting. The gold price has recovered some of its recent falls this month. More specifically, the Resolute share price more than doubled in the first 10 months of 2024 due to gold price rises and good operational performance. During November the share price fell back to where it was at the start of the year after the company announced that its CEO had been detained in Mali by Government Officials following disputes over business practices and tax. The company believes the claims are unsubstantiated but has agreed to pay the Mali government USD 160m to settle the claims. The Fund has reduced some exposure to gold stocks following our process.
Echo IQ is a medical technology company that uses artificial intelligence to detect heart failure. The company recently announced positive results from clinical studies, and during November signed an agreement with Beth Israel Deaconess Medical Centre in Boston to integrate its technology into the medical centre’s systems for identifying patients with aortic stenosis. BIDMC performs about 30,000 echocardiograms a year which will provide further evidence of the effectiveness of Echo IQ’s technology.
Recent AGM Investor Briefing
To watch CDO’s recent AGM Investor Briefing please click here. In this AGM Investor Briefing, Karl Siegling starts by giving an update on CDM’s and CDO’s past and current year performances, discusses the portfolio’s current compositions and highlights some important market trends. Karl Siegling and Chris Garrard then discuss in detail some of the portfolio’s positions, namely Evolution Mining, Westgold Resources, Meta Platforms, Netflix and Block. Karl then discusses some further investment themes and CDO trading positions before closing with the outlook for 2025.
Fully Franked Year-end Dividend
On 31 October 2024 the Company paid its 7.0 cents per share fully franked year-end dividend, bringing the full year dividend to 13.5 cents per share fully franked. This full year dividend equated to a 7.8% fully franked yield or a 11.2% gross yield (grossed up for franking credits) based on the share price of $1.722 per share on the day of the announcement. Importantly this equated to a 7.1% dividend yield based on the pre-tax NTA of $1.91 on the day of the announcement, due to the Company shares trading at a discount to NTA. After paying this dividend the fund still has 15.5 cents per share of profits reserves to pay future dividends.
The dividend re-investment plan (DRP) was in operation for this final dividend. The Company will buy-back the shares it issued under the DRP. This buy-back will operate when the CDO share price is trading at a discount to the Pre-Tax NTA. At the time of writing this newsletter, CDO is trading at a pre-tax NTA discount of around 14%.
Fund NTA
Fund Performance
Historic Portfolio Exposure
Portfolio Sector Analysis
Portfolio Market Capitalisation Analysis
Franked Dividends Declared
After paying the final dividend the company will have around 15.5 cents per share of profits reserves to pay future dividends.
News
To view all previous Cadence webcasts and interviews please visit the Media Section of the website.
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.
