Cyan C3G Fund – August Newsletter

08 Sep 2014

August 2014 Newsletter

We would like to welcome you to our first fund update.

Pleasingly the Cyan C3G fund started its first month well, returning 2.4% to investors after all fees, which was well in excess of both our benchmark and the All Ordinaries index.

Below is a summary of some of the investments we have made since fund inception on the 24th July 2014:

We initiated a longer-term position in salary packaging and novated leasing company McMillan Shakespeare (MMS) on the basis of its fundamental value and growth outlook.

We participated in the IPO of organic baby-food producer Bellamy’s Organic (BAL), which listed at a strong premium to issue price. We also increased our position post listing due to the exciting outlook for growth, both domestically and in China. At the end of the month the stock was trading at a 37% premium to issue price.

We built a position in telecommunications and utility services provider M2 Group (MTU), which rewarded us with a strong result and positive earnings outlook statement. The stock climbed 22% in August.

We bought and continue to hold telecommunications retailer Vita Group (VTG) to benefit from the improving performance of its suite of Telstra branded stores.

We participated in the IPO of training, recruitment and labour-hire business Ashley Services (ASH) that also listed at a pleasing premium to issue price.

Despite the activity above, we have been taking a cautious view with much of the Fund currently remaining in cash and short-term deposits.

For more information, please download our August newsletter Cyan_C3G_Monthly_Aug14.

Dean Fergie & Graeme Carson