Update from the CIO

Today we reported an NTA of $3.07, up from $3.01 last week. The share price is at $3.05. For the month the NTA is up just over 2%, while the share price is up just under 2%.

Many of our core portfolio stocks had good bounces on no new news this week, while JB Hi-Fi was up 10% on the back of positive commentary during their AGM, and including dividends paid has now provided us with a return of 64% in 11 months! Remember that this was one of the most heavily shorted stocks in 2018. Lear Corporation (LEA.US), which makes automotive seating and electrical distribution systems for cars reported last Friday and had a nice little bounce of 3% after reporting better than expected numbers for the quarter.

This week sees the big tech stocks (excluding Microsoft, which reported last week) report which should make for interesting (and no doubt) volatile times.

You will hopefully have seen the Notice of Meeting for our Annual General Meeting (on November 26) which was released to the market on Friday, which included important information about our opportunity for TDM Growth Partners to become a new core fund manager for HM1. We are extremely excited about this rare opportunity we have been given. If approved, we will be conducting a renounceable rights issue to fund their investment recommendations. Talk to your financial advisor or stockbroker if you are unsure about what this means for you.

The core portfolio is now up 18% since inception, while the conference portfolio is up 33%. Remember that the conference picks are (up to) 12 month recommendations, some of which we have closed out already, either because they have reached their target prices, or something has changed which invalidated the original investment thesis. With just over 3 weeks until our next conference we look forward to investing in a new suite of stocks within that part of the portfolio, which represents 40% of funds invested.