Opthea jumps 59%

The Fund returned 10.9% in November as global markets bounced strongly from a weak October, driven by falling inflation and bond yields.

• Clarity Pharmaceuticals and Opthea reported significant stock gains of 36% and 59% respectively, driven by promising clinical trial results.
• IperionX, the Fund’s largest holding, saw a 12% increase due to capital raising and grants, signaling strong potential for 2024.
• Other notable gains include Stoeer (22%), Cellnex (25%), and Tenet Healthcare (25%), the latter two both rising due to falling bond yields. There were no detractors during the month.

Top Holdings (alphabetically)

Clarity Pharmaceuticals Ltd

Australia

Health Care

Clarity Pharmaceuticals Limited operates as a radio-pharmaceutical company. The Company focuses on the developing targeted therapies for the treatment of cancer and other serious diseases. Clarity Pharmaceuticals serves customers worldwide.

Eckert & Ziegler Strahlen- und

Germany

Health Care

Eckert & Ziegler AG manufactures equipment for the pharmaceutical industry. The Company produces low-level radiation sources used to treat cancer, heart and other diseases, and in equipment used to calibrate gamma cameras and positron emission computer tomographs. Eckert & Ziegler also develops cancer drugs. The Company markets its products worldwide.

Immutep Ltd

Australia

Health Care

Immutep Limited operates as a biotechnology company. The Company focuses on developing novel immunotherapy treatments for cancer and autoimmune disease. Immutep offers its services worldwide.

IperionX Ltd

Australia

Materials

IperionX Limited focuses on sustainable mineral and material supply chains. The Company develops low carbon titanium for advanced industries including space, aerospace, electric vehicles, and 3D printing. IperionX serves customers 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.

Recent portfolio addition Clarity Pharmaceuticals, which produces radiopharmaceuticals and diagnostics, rose 36% during the month and has now returned 70% over the three months since we acquired the holding. The main driver of returns has been a phase I/IIa dose escalation study called SECURE for its prostate cancer therapeutic product SAR-bisPSMA, which is generating substantial signs of efficacy with few side effects albeit in a small number of patients. We expect further data readouts over the coming months will be of great interest to both the medical and investment community.

Opthea, which is developing a treatment for the leading cause of blindness in adults, Wet Aged Macular Degeneration (Wet AMD), rose 59% after appointing a highly experienced new CEO and CFO late in October. We and other shareholders met with the new management team and were highly impressed. Dr Frederic Guerard holds a doctorate in pharmacology and was Head of Ophthalmology at Novartis before becoming CEO of Graybug which was also developing a treatment for WetAMD until it failed Phase 3 studies. We believe he brings highly relevant experience in launching new drugs and is an excellent hire. The company is on track to complete enrolment of its two major Phase 3 studies in Q1 and Q2 of 2024 with results due 12 months later. Further capital will be required before the end of 2024. The company currently has a market value of USD200mln but will be worth many billions if the phase 3 study is successful. We would expect the shares will move higher in anticipation of the study results over the course of 2024.

The Fund’s largest holding, titanium metal process technology company IperionX rose 12% after raising capital, receiving a grant from the US Department of Defence and a loan from the EXIM Bank late in October. The Chairman, Todd Hannigan, also bought shares on market following the raise. We wrote about the company extensively in last month’s report, and we believe it is extremely well positioned moving into 2024 as it ramps up production of its new Virginia facility.

German outdoor media company Stoeer rose 22% after reporting strong quarterly results despite weak German economic data as billboard advertising takes market share from television and print advertising. Digital billboards allow better advertisement targeting at different times of the day. The company has hidden value in two assets that are likely to be divested over the coming years – online cosmetics retailer Assam Beauty and data aggregation company Statista, which could unlock significant value.

Europe mobile tower owner Cellnex rose 25% on the back of falling bond yields and on reports of possible asset sales to reduce debt. US hospital operator Tenet Healthcare, up 25%, was similarly buoyed by falling bond yields.

There were no detractors during the month.

As we move into the final month of the calendar year we will look to deliver a ‘year in review’ in early 2024. Please let us know any questions you would like us to cover, either specific to the sector, Portfolio, or any portfolio holdings below.