Portfolio Commentary

The HM1 portfolio was down 1.5% for the month compared to the MSCI World Index (AUD) which was down 1.7%. Since inception HM1 has delivered an annualised pre-tax investment return of 10%. The current annualised yield as at the end of April is 5.6% fully franked. In April, markets experienced extreme volatility due to the impact of US trade policy. President Trump's initial announcement of broader-than-expected tariffs caused equity markets to plummet and the VIX to spike. However, markets recovered after a softened approach, including a 90-day pause on tariffs for non-retaliating countries and the removal of tariffs on some electronic goods. US/China trade tensions remain although the market seems hopeful of some sort of rapprochement in the coming months. Developed equities ended the month up slightly, with the US underperforming. Growth stocks outperformed value stocks, partly due to the energy sector's poor performance. Emerging markets showed resilience, particularly Mexico and Brazil. Mercadolibre, an e-commerce business focused on South and Latin America and a recent addition to the portfolio performed particularly well in April (up 19%). Gold saw significant gains, reaching a new all-time high. Commodities, however, saw some losses as metals weakened and oil prices fell due to recession fears and increased OPEC supply.

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The HM1 portfolio was up by 6.9% for the month, outperforming the MSCI World Index (AUD), which gained 5.2%. In May, global markets rebounded strongly from April’s lows, supported by easing trade tensions between the US and the EU and a temporary pause in planned tariff increases. These developments helped reduce broader concerns around the global economic outlook. Since inception, HM1 has delivered an annualised pre-tax investment return of 11.0%. As at the end of May, the current annualised yield is 5.3%, fully franked.

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During the month, we spoke with Jeremy Bond of Terra Capital to revisit his 2024 Conference stock recommendation, Coeur Mining (CDE). The stock has performed strongly in recent months and is now up approximately 30% since it was added to the portfolio in October last year. Jeremy remains positive on the outlook for Coeur, highlighting its scale, free cash flow profile, and balance sheet strength relative to peers in the silver sector. He notes that the company is progressing toward key operational milestones, including full production at the Las Chispas and Rochester sites, and anticipates a stronger financial position over time should commodity prices remain supportive.

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You can watch Jeremy’s original pitch from the 2024 Sohn Hearts & Minds Conference here. For further background on Coeur’s operations, we’ve included a more detailed overview here.

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The HM1 portfolio was up by 6.9% for the month, outperforming the MSCI World Index (AUD), which gained 5.2%. In May, global markets rebounded strongly from April’s lows, supported by easing trade tensions between the US and the EU and a temporary pause in planned tariff increases. These developments helped reduce broader concerns around the global economic outlook. Since inception, HM1 has delivered an annualised pre-tax investment return of 11.0%. As at the end of May, the current annualised yield is 5.3%, fully franked.

‍

During the month, we spoke with Jeremy Bond of Terra Capital to revisit his 2024 Conference stock recommendation, Coeur Mining (CDE). The stock has performed strongly in recent months and is now up approximately 30% since it was added to the portfolio in October last year. Jeremy remains positive on the outlook for Coeur, highlighting its scale, free cash flow profile, and balance sheet strength relative to peers in the silver sector. He notes that the company is progressing toward key operational milestones, including full production at the Las Chispas and Rochester sites, and anticipates a stronger financial position over time should commodity prices remain supportive.

‍

You can watch Jeremy’s original pitch from the 2024 Sohn Hearts & Minds Conference here. For further background on Coeur’s operations, we’ve included a more detailed overview here.

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October 3, 2023

Understanding the 4 pillar framework underpinning a high conviction strategy

Listen to episode one with Chief Investment Officer Charlie Lanchester and TDM Growth Partners Investment Team Members Ed Cowan and Fraser Christie. They share their unique investment philosophies and delve into two high conviction stocks recommended for the HM1 portfolio.