SUMMARY
The Fund fell 0.9% during February.
The Fund fell 0.9% during February.
Germany’s largest outdoor media advertising company Stroeer rose 7% in February after reporting strong full-year results and guidance for 2023. European gas prices are now trading at pre-Ukraine invasion levels, which have reduced pressure on the German economy. We expect the company to benefit from a switch from fixed displays to digital billboards, which can earn higher advertising rates. Stroeer also owns a valuable hidden asset in Statista, a data aggregation business to which the market is assigning little value.
US hospital operator Tenet Healthcare rose 12% despite announcing conservative profit guidance for 2023. Temporary nursing costs, fueled by Covid staff shortages, are now abating and are a tailwind for the sector.
Swiss solar panel producer Meyer Burger rose 10% on continued speculation over an expected European clean energy manufacturing support package.
Spotify continued its positive post results run on little news rising a further 7%.
On the negative side, Australian biotech Opthea (Wet AMD drug developer) declined 12% after announcing a 3-6 month delay in enrolment of its major Phase 3 studies. This was previously expected to be completed in the middle of this year. Although disappointing, we still believe the company has sufficient funds to reach the read-out of its studies later next year.
Norwegian bladder cancer company Photocure fell 23% after releasing weaker than expected results highlighting issues such as staff shortages in the December quarter, which have now been resolved in January and February. Revenue growth guidance of 20% for 2023 also disappointed market expectations with the company highlighting a shortage of semiconductors impacting its ability to place equipment with urologists.
US Internet advertising companies Alphabet, down 12%, and Magnite, down 16%, fell on disappointing revenue guidance despite other companies in the advertising industry such as Meta and the Trade Desk faring better. Magnite did highlight that trends were not deteriorating further in January or February. We have exited both holdings until we see more evidence of industry stability.
Portfolio Manager
Portfolio Manager
The Pengana High Conviction Equities Fund (the Fund) invests globally in a concentrated portfolio of up to 20 stocks. The Fund can invest in both small and large cap stocks and is diversified across countries and sectors. We avoid investment in companies that are currently, in our opinion, unnecessarily harmful to people, animals or the environment.
1. Net performance figures are shown are those of Class A Units, after all fees and expenses and assume reinvestment of distributions. No allowance has been made for buy/sell spreads. Please refer to the PDS for information regarding risks. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
2. Inception 11 December 2014.
3. Annualised standard deviation since inception.
4. Relative to MSCI World. Using daily returns.
* For further information regarding fees please see the PDS available on our website.