And the reason is ?

Karl Seigerling writes

”Sydney, 23rd August 2019: Cadence Capital Limited (ASX: CDM) today announced a full year loss after tax of $59.3m. Karl Siegling, Chairman, said “Our portfolio performed poorly during the past financial year, delivering one of its worst performances since the Company’s inception 13 years ago.”

”Our portfolio performed poorly” and “it” delivered one of its worst performances since the companies inception 13 years ago” ???????”

What a “naughty” portfolio !!

I find it absolutely unbelievable that a portfolio manager who has “lost” almost 60 million dollars of “our” money in one year can talk so “in the third person” about a portfolio managed by him, and fees charged by him for the management of that portfolio and then refer to the portfolio as if IT performed badly ???

what about Karl and his team, their management of the portfolio, their stock analysis, understanding and practice of stock weighting’s etc etc etc.????? I haven’t been able to do my sums to see what percentage loss 60$m is of the over portfolio in % terms, but is significantly wealth de stroying.

There was no “Mea culpa” or admitting that “we” stuffed up....... instead he was crowing or emphasising the fact that the fund was trading at a discount to asset backing !

And why wouldn’t it ???? A stock either trading at a discount or above asset backing is a fairly reliable barometer of the confidence that shareholders have in management and their ability to generate reliable and hopefully above market returns. After an almost $60m loss, together with letting one particular stock get to almost 18% of the portfolio, why would anyone in their right mind have confidence in the current management in the current environment ? And why would anyone also in their right mind, pay above NAV for the privilege ?

So you wouldn’t ? And neither would I !

I better change my user name to Jan.... because I am NOT a happy Camper !!!