March Report

The Fund fell -1.3% in March.

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.

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.

Tenet Healthcare Corp

United States

Health Care

Tenet Healthcare Corporation, through its subsidiaries, owns or operates general hospitals and related health care facilities serving communities in the United States. The Company operates rehabilitation hospitals, specialty hospitals, long-term care facilities, psychiatric facilities, and medical office buildings near its general hospitals, as well as ancillary health care businesses.

Music streaming company Spotify continues to march higher, up 16% for the month and 70% for the quarter along with market expectations for the company to improve margins after many years of losses. Gradual price increases by the company in line with competitors, cost-cutting measures, and customer growth are all helping to this end.

Optical equipment Ciena rose 10% in the month after reporting results that substantially beat expectations as the supply of components used to make the company’s products have improved after many months of semiconductor shortages. Demand for optical equipment remains strong as large internet companies continue to invest in data centre capacity and interconnections. Artificial intelligence is expected to greatly increase future data processing requirements.

US software company Walkme rose 9% on little news but we continue to see the company as greatly undervalued compared to other software companies. We expect this gap will narrow as the company moves to profitability over the next 12 to 18 months.

Cellnex, one of Europe’s largest mobile tower operators rose 4% after activist investor TCI requested that three of the company’s 11 directors step down including the Chairman. The stoush centres around the future selection of the CEO. It is hoped that the CFO is focused on improving profitability after many years of acquisitions. The company is also seen as a likely takeover target.

Australian biotech Immutep rose 8% after announcing a new phase 2/3 study combining its drug Efti with chemotherapy in a particular type of hard-to-treat metastatic breast cancer. 70 patients will be enrolled in the initial phase 2 study, which will expand into a larger phase 3 study if the results are successful. The company now has clinical studies in two of the largest cancer indications: lung and breast cancer. Other indications include head, neck cancer and recently added soft tissue sarcomas. Expanding the number of indications boosts the company’s appeal as a takeover target.

US entertainment company Dave & Busters fell 7% despite a very strong quarterly financial report as the market focused on the high comparison base for the quarter ahead. Despite last year’s very strong COVID reopening as its comparable period, management expects only a low single digit decline in revenue this year. Management plans to hold an analyst day where longer term growth targets including analysis of venue returns and new venue openings will be announced.

German potash producer K+S remained under pressure down 10% as fertilizer prices remain muted ahead of the Northern Hemisphere buying season, which is expected to lift prices over the coming months.

Opthea (also discussed last month) fell 12% after pushing out the completion of enrolment of its major global phase 3 study in Wet Age-related Macular Degeneration (Wet AMD). With a market cap of just USD210mln compared to a market size of USD3-4bn we believe patience will be rewarded over the next 18 months.