January report

The Fund rose 5.2% in January.

Top Holdings (alphabetically)

Ciena Corp

United States

Information Technology

Ciena Corporation develops and markets communications network platforms, software, and offers professional services. The Company's broadband access, data and optical networking platforms, software tools, and global network services support worldwide telecom and cable/MSO services providers, and enterprise and government networks.

Major Drilling Group Internati

Canada

Materials

Major Drilling Group International Inc. is a contract drilling company. The Company has drilling operations in Canada, United States, Mexico, South America, Australia, Europe, Asia, and Africa. Major Drilling also conducts directional, environmental, and geotechnical drilling and, in addition, manufactures drills and support equipment.

Opthea Ltd

Australia

Health Care

Opthea Limited operates as a biotechnology company. The Company develops therapies for diabetic macular edema, corneal neovascularization and transplantation, and dry eye disease. Opthea serves patients and healthcare providers in Australia.

Spotify Technology SA

United States

Communication Services

Spotify Technology S.A. provides entertainment services. The Company offers commercial free music and audio streaming solutions to subscribers as well as provides content design services. Spotify Technology serves clients worldwide.

Telix Pharmaceuticals Ltd

Australia

Health Care

Telix Pharmaceuticals Limited operates as a biotechnology company. The Company develops and commercializes molecularly-targeted radiation therapy for the treatment of prostate, renal, and brain cancer. Telix Pharmaceuticals serves patients worldwide.

Spotify rose 38% during the month and, at the time of writing, another 14% month to date in February. Last year Spotify invested heavily to drive revenue growth. In mid-January, the company announced it would reduce headcount by 6% and that it would be more focused on growing revenue in line with costs. When this combined with strong reported user growth, the potential to increase prices and positive FCF guidance the market reacted favourably.

Dave & Busters, a US entertainment company, and Ardent Leisure, which owns Dreamworld, both rose 18% and 15% respectively despite no specific news. In general, we attribute this to the market re-evaluating the potential for strong demand for affordable post-COVID entertainment continuing despite higher interest rates. Both companies provide relatively cheap entertainment offerings and have been able to navigate the impact of rising input prices well.

Amadeus rose 16% as some airline customers reported strong passenger numbers and raised guidance for 2023.

German Potash producer K+S rose 17% as investors positioned for demand for potash to trough in 1Q23. High prices have reduced 4Q22 demand, but with prices returning to better levels, and the need to replenish global soil potash levels we also see an improvement in 2Q23/3Q23 demand. Pricing may also stabilise as major producers signal reduced capacity expansion despite a global shortfall of 7MT in a typical 70MTPA market caused by sanctions on Belarus and Russian supply.

On the negative side, US software company Walkme fell 12% after co-founder Rafael Sweary resigned as President of the company but will remain on the board. The shares have subsequently risen 14% in February after reporting strong results.