I was reading an old edition from late 2011 Under the radar report and came across an interview with Karl describing his process for buying and selling in CDM. Obviously it may have changed since them but it sounded very similiar to the process he is always talking about .......an exert goes "This process is followed with all the long positions Cadence takes on, according toSiegling. His fund will initially hold 1 per cent of a company (as a percentage of fundsunder management) and then build up a bigger position over time, if the company’sshares move northward. If, however, they don’t, and the shares come off by say 15 percent or more, it quickly starts exiting.His tolerance for holding on to a stock that isn’t delivering a positive return dependsupon how its performance relates to the market. For example, if the All OrdinariesIndex falls 10 per cent, but one of Cadence’s stocks falls 5 per cent, he would be moredisposed to hang on. Conversely if the stock tanks 20 per cent, it’s time as a Cadenceinvestment gets cut."
One wonder why this wasn't done for ARQ and what is so special about the stock. Hopefully the upcoming June qtr webcast review will reveal all.
CDM Price at posting:
75.5¢ Sentiment: None Disclosure: Not Held
(20min delay)