Cadence Opportunities Fund IPO

Cadence Capital Investment Philosophy

We believe that a combination of both Fundamental and Technical analysis, along with a disciplined stock entry/exit strategy, are key to producing above market investment returns over time. Watch this introductory video for an overview of our process.

Our philosophy is underpinned by four long held investment beliefs:

 

1. Using both Fundamental and Technical Research is critical

We believe a combination of Fundamental and Technical research has a greater probability of producing higher returns than either Fundamental or Technical research alone.

 

2. Disciplined ‘Entry and Exit’ strategy

We see the ‘Entry and Exit’ strategy (Technical) to be as important as the investment decision (Fundamental).

 

3. Open Mandate

Cadence considers having an ‘open mandate’ (which allows the company to invest in any listed equity and have the ability to allocate between equities and cash), as a key tenant in our approach to managing money

 

4. Long and Short

Having the ability to take both long and short positions assists in generating excess returns.

Our process of scaling into and out of positions is highly disciplined

Fundamental Research

We visit and analyse 600-800 companies per annum to determine whether they are cheap or expensive, as illustrated below.

Technical Research

We overlay our fundamental analysis with technical analysis to see how the stock is trending before making any investment decision.

1st Rule: Do NOT buy a falling stock

2nd Rule: Do NOT short a rising stock

3rd Rule: Wait until the trend emerges then scale into and out of positions. DO NOT AVERAGE DOWN

4th Rule: Monitor short positions very closely as markets fall 3 times as quickly as they rise

The Company’s Open Mandate allows us to invest in any listed equity and to allocate between cash and equities depending on how individual stocks in our portfolio are performing.

Many fund managers are restricted on the shares they can invest in; as well as the levels of cash they can hold.

All potential and current portfolio positions are managed and monitored within the Company’s proprietary Cadence Dashboard.

We see this Open Mandate as our edge

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.