Cadence Capital Limited · ASX:CDM
Cadence Capital — Q1 2010 Earnings Presentation
10 slides from Cadence Capital's earnings presentation, April 2010
Slide 1: Webcast March Quarter 2010
CAPITAL LIMITED Webcast March Quarter 2010
Slide 2: All Ordinaries Index
All Ordinaries Index Î The market has now risen above 5,000 after reaching a low point around 3,100 in March 2009. Î We are approximately half way between the ‘point point of maximum optimism’ and the ‘point of maximum pessimism’ in only three years
Slide 3: March 2010 Quarter Gross Performance
March 2010 Quarter Gross P f Performance Performance to 31st March 2010 CDM All Ords Outperformance Past quarter ( Jan to March 2010) 5.10% 1.45% +3.65% 3.65% 1 Year 51.65% 44.01% +7.64% Annualised return since inception (54 months) 15.44% 5.78% +9.66% Inception to date accumulated return (54 months
Slide 4: Exposure
160% Exposure 140% 120% 100% 80% 60% Long Exposure Short Exposure 40% Net Exposure 20% 0% -20% -40% -60% Î Started the quarter with 123% net long exposure and ended the quarter with 101% net long exposure. Most of this reduction was due to cutting back materials exposure during the quarter by 18% Î
Slide 5: Sector Exposure
Sector Exposure Consumer Commercial Capital Goods Services Services Energy 2% 2% 2% 1% Technology 2% Telecom Banks Services 27% 8% Diversified Financials 10% Software & Services Materials 19% 27% Î Top four sectors exposures during the past quarter were Banks, Materials ,Software and Services and Di
Slide 6: Performance by Stock
Performance by Stock Î Stocks that Cadence generated strong positive returns from during the quarter were: RHG TPM, RHG, TPM FFF, FFF NKP/NKPO, NKP/NKPO RKN, RKN CUS, CUS AGO AGO, MCC MCC, MIK MIK, AVO Î Stocks that underperformed during the quarter were: COM, PIH, PNA, BVA
Slide 7: FirstFolio Limited (FFF)
FirstFolio Limited (FFF) Î On the 27th August 2009 FFF made an Australian Stock Exchange announcement giving earnings guidance of $10M-$11M $10M $11M of EBITDA for the Financial Year 2010 Î Having followed this company for six years this announcement alerted our interest Î FFF whilst well run histor
Slide 8: FirstFolio Limited (FFF)
FirstFolio Limited (FFF) Î We followed up on previous ASX announcements and both annual reports and half half-yearly yearly reports and visited the company Î What we learnt from our analysis was that FFF had made a strategic purchase of a business called eChoice, previously owned by a private equity
Slide 9: FirstFolio Limited (FFF)
FirstFolio Limited (FFF) Î Cadence Capital Limited acquired its first stake in FFF at 4.5 cents per share after assessing that a high percentage of all incremental revenue would fall to the bottom line as profit Î FFF has since raised money via a placement and rights issue at 5.5 cents and we again
Slide 10: Summary and Outlook
Summary and Outlook Î Following on from our AGM commentary in November 2009, volatility in the market has fallen significantly and the market is in a state of recovery Î Stock markets tend to climb a ‘wall of worry’ and especially in a recovery phase Î Following the worst stock market collapse in 75