CV Capital – 28 February 2018

To my fellow shareholders,

I have recently got back to Sydney after being away for a month which is the reason for the slight delay and brevity of February’s report.

The stock market is having an amazing start to 2019. Year-to-date (1 Jan 19 to 28 Feb 19) our benchmark STW is up 11.8% erasing all the losses experienced in the last quarter of 2018.

In terms of trading activity, we have added one new position and added to an existing position in the portfolio. These investments were not substantial and we are still sitting on 25% cash weighting in our portfolio (27% cash in the last report).

Our portfolio’s return has been flat since the last report (increase of 0.2%). As a result of our monthly returns being flat and the stock market’s return surging, we are back level with the benchmark. Given CV Capital is more than a year old, I have presented returns on an annualised basis. The equivalent simple return is 7.9%.  

The financial statements for FY2018 is currently being prepared by our accountant and I expect to be able should be able to send them to all shareholders within the next few weeks.

Although I have been reporting CV Capital’s performance on a month end basis, I’ve done it mainly for the purposes of transparency. CV Capital’s objective is to beat the benchmark over the long term (3-5 years) and therefore I do not place too much emphasis on the current performance given the short history.

The table below shows our performance (before taxes).

 15 Jan 1828 Feb 19Gross dividendsAnnualised returns
CV Capital1.01.079nil7.0%
STW (Benchmark)56.757.843.217.0%

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