Cadence Capital (CDM)

Shares / Stock Code

CDM

Stock Exchange / Sharemarket

Australian Securities Exchange

Cadence Capital (CDM) intends to provide investors with the opportunity to invest in an actively managed portfolio of Australian Securities. The Portfolio comprises investments in the Securities of 20 to 80 entities. The Company also focuses on active capital management which may involve buying-back its Shares when Shares are trading at a sizeable discount to net tangible asset backing and the issue of other securities through bonus issues, rights issues and option issues. The Company may also take short positions and deal in derivatives for hedging purposes. As of June 30, 2009, the Company's top 10 investments were RHG Ltd, Customers Ltd, Reckon Ltd, Independence Group NL, Henderson Group PLC, Dioro Exploration NL, Rio Tinto Ltd, Cudeco Ltd, Macarthur Coal Ltd and HSK Notes.

Cadence Asset Management manages two pools of capital with a similar mandate. Cadence Capital - a Wholesale Unit Trust structure for high net worth, sophisticated and professional investors as defined under the Australian Corporations Act, and Cadence Capital Limited - a Closed End Company structure listed on the Australian Stock Exchange (ASX). The fully paid ordinary shares trade under the code CDM. Cadence Asset Management (ACN 106 551 062) is a long / short equities investment Manager who invests in companies listed on the Australian Stock Exchange.

Cadence Capital Investment philosophy

The over riding belief of management is that the use of both fundamental and technical analysis has a greater probability of producing higher returns than either fundamental or technical analysis alone.

Fundamental Analysis

  • Bottom up research
  • Target 20 – 40 core investments
  • Longer holding periods

Technical Analysis

  • 0 – 40 trading opportunities
  • Shorter holding periods

In assessing investment opportunities Cadence Capital uses both fundamental and technical trend analysis. CDM believes that Security values and prices move in trends and those Securities that display consistent fundamental and technical trend characteristics have a greater probability of producing high rates of return than Securities with inconsistent fundamental and technical trend characteristics. The Manager believes that greater returns are made from core investments over the long term but that trading opportunities can be viewed as supplementing returns. Consequently the majority of the Cadence Capital’s time and effort will be spent seeking long-term core investment opportunities. Trading opportunities tend to be cyclical in nature and are often closely correlated with the level of activity in the market.

The Manager engages the services of a Prime Broker to facilitate the short sale of securities as well as the use of debt in employing investment strategies.

Cadence Capital (CDM) Products and Services

  • Company invests in an actively managed portfolio of securities

Cadence Capital (CDM) Locations and Subsidiaries

Cadence Capital Head Office
131 Macquarie Street, Level 11,
SYDNEY, NSW 2000

Phone: (02) 8298 2444
Fax: (02) 8298 2499

Cadence Capital (CDM) Share Price

Submitted by ASX Listed Company on 6 March, 2010 - 01:31

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