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Cadence Capital Limited (CDM)

Discussion in 'Listed Investment Companies (LIC) and Trusts (LIT)' started by austing, 24th Sep, 2016.

  1. austing

    austing Well-Known Member

    Joined:
    5th Jun, 2006
    Posts:
    386
    Location:
    north maleny
    twisted strategies likes this.
  2. austing

    austing Well-Known Member

    Joined:
    5th Jun, 2006
    Posts:
    386
    Location:
    north maleny
  3. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    228
    Location:
    QLD
    CDM’s Portfolio (Top 10) Weighting
    Stock Portfolio(%)
    Macquarie Group Ltd 13.3 %
    Melbourne IT Ltd 8.0%
    Asciano Ltd 6.5%
    Henderson Group Plc 5.5%
    Alphabet Inc 4.1%
    Retail Food Group 4.0%
    Mastercard Inc 3.9 %
    Facebook Inc 3.6%
    Softbank Group Corp 3.3%
    Select Harvest Ltd 3.0%

    now i love CDM because our styles differ markedly

    MQG i bought this consistently down to $20 ( i have since rescued that cash and an extra 100% profit )
    MQG gave me a useful amount of SYD shares before reducing and even now MQG is roughly my 5th biggest holding .
    MLB ( as mentioned elsewhere ) made a decision i didn't like ( but CDM did , i exited and CDM bulked up on them .)
    HGG i bought some in the Brexit reaction ( along with extra CDM which dropped because it held a lot of MQG and HGG )
    RFG is one of those stocks i may never own directly , i worked in the industry many decades back and can't see the attraction , if CDM make me money for me on this , nice
    SHV and stock i bought cheap ( averaging down in the dip ) rescued my cash + double again in profits , and let the DRP slowly build up the holding .


    i buy LICs that and good at styles i am not ... sort of an insurance to reduce my weak-points ( and adverse decisions

    PS if i were to buy international shares direct Alphabet ( Google ) and Facebook would be right down the bottom of y priority list
     
  4. austing

    austing Well-Known Member

    Joined:
    5th Jun, 2006
    Posts:
    386
    Location:
    north maleny
    You're taking a much more active approach than me. At 56 and retired (have been for quite some time now) I'm just happy to hold those I have long (very long) term faith in and collect the dividends. I don't enjoy having to monitor our portfolios and take an active approach nowadays.

    I also topped up on MQG cheaply during the GFC but continue to hold as I do.

    If you look at CDM's long term performance it's quite ordinary. It's one claim to fame was the success with RHG which gave it's average performance a boost. That's starting to fade now.

    If you're into long / Short LICs then ALF leaves it for dead performance wise.

    I hope you don't think I'm deliberately trying to be negative with some of your LIC holdings. I'm only an amateur and merely putting forward my view which as you say is based on a very different approach to yours. Mine is a very long term game where passive (and I mean reeaaallly passive) income is the objective.
     
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  5. twisted strategies

    twisted strategies Well-Known Member

    Joined:
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    Posts:
    228
    Location:
    QLD
    i remember RHG very well and was there before CDM ( and was rather sad to be evicted )

    in fact it was CDM in RHG that inspired me to look closer at CDM,

    i am trying to diversify across LIC styles as i see a volatile market in the near term , and someone ( not everyone) will get the market moves very right i think 2016 and 2017 will make somebody's reputation , and am trying to spot them as they are having their stellar run ( not after it )

    accurate and fair works for me , i am fair from perfect , and my flaws are sometimes an asset .

    i was ( and still am at a reduced pace ) averaging down CAM ( since CAMPA is converting in April 2017 the game will change a little ) but CAM has resorted to limited trend trading to boost returns ( eroded by the floating rate hybrids it holds )

    i am an amateur also but roughly 5 years older then you so my 'target date 'is closer .

    i started in the market very late 2010 and inherited some shares in 2011 , but 2011 turned out to be a great for a novice to start buying ( especially when i had to be aggressive but clever ).

    now at retirement i am thinking of a total review of the holdings

    some maybe sold/reduced , some shares will have the DRP swapped to 100% cash divs and others 50% cash , 50% shares ( some like PRG are already arranged to post retirement mode ).

    the ( supposed ) mainstream concept of 'retire and liquidate' , completely confuses me ( unless you are expecting to migrate .. and isn't the government making that option attractive )

    MQG was selected because i needed growth in a hurry so bought into the dip ( down to $20 ) and after MQG dished out the SYD ( just what a retiree needs SYD , without cash risk ) took extensive profit out of MQG without exiting and still DRPing

    in 2011 while other were dumping the banks i grabbed a core holding of WBC , ( the MQG ) and VAS ( then heavy in the big 4 ).

    i am still looking at extra ( different ) LICs , as managers refine styles and start new LICs

    i bought into CIE in preference to QVE ( even though i hold BEN ,BOQ , TAH and SKI at nice entry prices ) i can see their concept and it does look the right time to be starting that strategy .

    others are also being assessed

    for CDM one thing to watch for is where the AIO buy-out cash goes ( a feature of WAX and CDM buying selected take-over targets ).

    i don't mind the monitoring of portfolio holdings because i am always searching for new angles ( since i resist most penny dreadful plays ) and sometimes the LICs alert me to one ( a tactic or actual stock )

    am still hoping for MLT at my target price , but extra BKI in the dips to come looks more likely ( i will wait years for an entry price .)

    CDM takes short positions ( i am not set up for that) accumulates in an up trend ( i will accumulate into a slide , and reduce into an uptrend , so is a proxy alter-ego for me .

    for me to be really passive in LICs a really need a GFC-like entry point .

    but i use the ETFs as passive LICs and ( normally ) let them accumulate via the DRP ( SYI being the main exception where i reduced to take some profit and then added extra in a dip )

    i consider myself 'time poor ' is really needed the 'GFC replay' before now to exploit fully ( since i don't leverage it will only look terrible to me , not be terrible )
     
  6. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    228
    Location:
    QLD
    ****************

    PORTFOLIO CHARACTERISTICS The Manager invests in a portfolio of domestic and international listed companies. At 30 June, the portfolio had a net exposure of 80%, with the invested portfolio largely in long positions with shorts amounting to 6% of the portfolio. Cash decreased from a high 36% of the portfolio to 20% at the end of the June quarter. Macquarie Group Ltd (ASX: MQG) continued to be the largest investment at 13.3% of the portfolio. We note that a maximum of 5% of the portfolio at cost can be invested in an individual stock and therefore a holding of greater than this can be attributed to growth in the stock value. The major changes to the top ten over the past quarter have been the addition of Select Harvest, Softbank Group Corp and Asciano and the removal of Luxottica, ANZ and a Woodside petroleum short position.

    *****

    . We note that a maximum of 5% of the portfolio at cost can be invested in an individual stock and therefore a holding of greater than this can be attributed to growth in the stock value.
    5% x 2.66 = 13.3%

    MLB , AIO and HGG guaranteed to be in profit as well ( at the time )

    very interesting
     
  7. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    228
    Location:
    QLD
    t he latest update

    Code Position Direction Currency Holding%
    MQG Macquarie Group Ltd Long AUD 9.0%
    MLB Melbourne IT Ltd Long AUD 8.5%
    RFG Retail Food Group Long AUD 6.0%
    HGG Henderson Group Plc Long AUD 5.3%
    9984 JP Softbank Group Corp Long AUD 3.6%
    5930 KS Samsung Electronics Co Ltd Long USD 3.3%
    FB US Facebook Inc Long AUD 3.2%
    GOOG US Alphabet Inc Long AUD 2.8%
    ECX Eclipx Group Ltd Long AUD 2.6%
    AIG US American International Group Long AUD 2.3%
    IGO Independence Group NL Long AUD 2.2%
    ANZ Australia and New Zealand Banking Group Long AUD 2.1%
    WPL Woodside Petroleum Ltd Short AUD 2.0%
    IPH IPH Ltd Long AUD 1.8%
    MND Monadelphous Group Ltd Long AUD 1.7%
    NAB National Australia Bank Ltd Long AUD 1.6%
    MA US Mastercard Inc Long AUD 1.5%
    CBA Commonwealth Bank of Australia Long AUD 1.3%
    RIO Rio Tinto Ltd Short AUD 1.2%
    PEP Pepper Group Ltd Long AUD 1.2% Top

    Portfolio Holdings Gross Exposure 63.14%

    Cash on Hand 30.39%

    extra personal holding info

    i hold both RIO and WPL both small holdings in a paper loss ( so shorting them looks fair to me )

    the increase in cash held ( partly funded by the AIO take-over )

    i will be ( still ) looking to add extras here as Brexit worries increase .... looking for close to $1.10 for my next top-up