Cadence Opportunities Fund returned a gross performance of -2.4% in June compared to the All Ordinaries Accumulation Index which was up +0.7% for the month. For the 12 months ended 30 June 2024 the fund is up +10.8% compared to the All Ordinaries Accumulation Index which was up +12.5%. The top contributors to performance during the year were Meta Platforms, Alumina, Austin Engineering, Netflix, Capstone Copper, Whitehaven Coal and Westgold Resources. The largest detractors from performance were Sierra Rutile, Zillow, Strike Energy and Syrah Resources.
Meta Platforms shares were up over 75% during the last financial year. The benefits from Mark Zuckerberg’s “year of efficiency” as well as improved revenue from advertisers drove net income of $45.8b for the last 12 months, more than double the $21.4b earned in the 12 months prior to that. Meta Platforms is currently investing heavily in AI and is well positioned to benefit from its integration into Facebook, Instagram, and WhatsApp.
During the last financial year Alumina agreed to a takeover from Alcoa. Alumina shares have recently traded in line with Alcoa shares due to the expectation that the takeover will be approved by shareholders at a Scheme Meeting to be held later this month. The takeover will consolidate the Alcoa and Alumina joint venture assets into a single entity, removing unnecessary complexity in the ownership structure.
Netflix continues to perform well. Over the past year Netflix has benefited from a focus on reducing password sharing, as well as the introduction of ad supported plans that are cheaper for subscribers but are expected to be just as profitable as ad free plans for Netflix. These initiatives have driven continued subscriber growth and the Netflix share price rose more than 50% over the last financial year
Discount to NTA and On-Market Buy-Back
At the time of writing this newsletter, CDO is trading at a pre-tax NTA discount of around 16%. CDO has implemented an on-market buy-back to buy back the shares it has issued under the DRP. This buy-back will operate whilst the CDO share price is trading at a discount to the Pre-Tax NTA.
Fund NTA
Fund Performance
Historic Portfolio Exposure
Portfolio Sector Analysis
Portfolio Market Capitalisation Analysis
Franked Dividends Declared
News
To watch CDO’s March 2024 Quarterly Webcast please click here. In this quarterly webcast, Karl Siegling first provides an update on the Company’s performance, the 6.5c fully franked interim dividend recently paid and the composition of the portfolio. Karl Siegling and Chris Garrard then discuss four of the Company’s current investments (Capstone Copper, Beach Energy, Cooper Energy and Origin Energy) and finish off with the outlook for the rest of the year.
To view all previous Cadence webcasts and interviews please visit the Media Section of the website.
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