MONTHLY PORTFOLIO REPORT APRIL 2021
360 Capital Active Value Equity Fund (TAVF)
Portfolio Returns
Portfolio Holdings as of April 2021
(%, returns greater than one year are per annum p.a.)
TAVF Portfolio Postions by Industry
At month end
1 mth
3 mth
6 mth
1yr
Inception
360 Capital Active Value Equity Fund (TAVF)
4.0%
11.5%
12.9%
29.0%
18.4%
Index
4.9%
8.1%
21.0%
31.5%
5.0%
Active Return
-0.9%
3.4%
-8.1%
-2.5%
13.4%
Portfolio Update The 360 Capital Active Value Equity Fund ruled off April with another positive return. The Fund, which has been going for 18 months (but listed for 1), has returned 18.4%pa (post performance fee). This compare to the market’s 5.0% return over the same period.
Cash
In the past 12 months the Fund is up 29.0%, and its underlying investments remain attractively priced (6.7x EBITDA vs ASX 10.7x, 120% of Book Value versus 213% for the market).
130.0 120.0 110.0 100.0 90.0 80.0 70.0
Acquisitions and additional investment: • • • • •
Intega (ITG.ASX) Shine Justice (SHJ.ASX) Paragon Care (PGC.ASX) EarlyPay (EPY.ASX) 5G Networks Ltd (5GN.ASX)
31/04/2021
31/03/2021
28/02/2021
31/01/2021
31/12/2020
31/11/2020
31/10/2020
31/09/2020
31/07/2020
31/08/2020
31/05/2020
30/06/2020
30/04/2020
31/03/2020
60.0
TAVF
Securities Movements (last 3 months)
Retail
140.0
29/02/2020
The current market settings in this space feel similar to the 20112012 part of the GFC recovery.
Mining Services
Investment company
360 Capital Active Value Equity Fund vs ASX All Ordinaries Accumulation Index
31/12/2019
Whilst the recovery from the COVID lows has spurred some recovery in the broad basket of “value” stocks, they remain cheap. This is the case when considering absolute valuations, and especially the case when compared to growth stocks.
Packaging
Capital Goods
Engineering
Building Products
Portfolio Performance as of April 2021
31/01/2020
We continue to see opportunity and good prospective returns in the emerging company space. The gaps that have emerged since the GFC between growth and value, and large cap and small cap, have continued to stay extended. Investors have chased yield, and/ or been prepared to invest for cashflows further and further into the future.
Engineering - monitoring
Media
30/11/2019
The Fund is invested in 14 business, in 14 industries (versus its mandate of 10-20 companies in more than 8 industries). It continues to carry 18% cash. The companies collectively grew EBITDA 16.9% at the 1H21 results (compared to 1H20).
Legal work
Marine Services
Healthcare
Business lending
ASX ALL ORDS 200 ACCUMULATION
Key Portfolio Metrics (as of 30th April 2021)
Portfolio
EV/EBITDA
P/FCF
P/ BV
Expected 3 Yr. IRR% Return*
6.8
12.7
118%
17.4%
Market
10.67
21.4
213%
-2.6%
Relative Value
64%
59%
56%
20%
Divestments: • Cardno - trim (CDD.ASX)
* 360 Capital Equities Estimates utilising our target investment values over three years for the average of the stocks held. The market data assumes PE premium of 25% to the Long-term average and a 3.5% p.a. dividend yield.
Portfolio Strategy The Fund seeks to invest in 10-20 companies which can become great long-term investments. This may occur either via acquiring good businesses at compelling prices, or actively engaging in and with the business to help improve the value of the business over our investment period. Essentially the Fund seeks to invest akin to private equity, without paying the premium for control embedded in PE deals.
Investment Objectives The investment objective of the Fund is to deliver >10% IRR returns (post tax and fees) over its targeted 3-5 rolling year investment timeframe. It seeks to do this by investing only where it has high conviction, and with a focus on delivering absolute returns (over its target timeframe).
Overview: Investment Manager: 360 Capital Equities Target no of securities: 10-20 Cash Weight: 0-50% Fee: No base management fee Performance Fee: 0-6% IRR = 0% Fee 6-8% = 2% Fee >8% = 20% of performance above 8%
Contact Details For enquiries in the Fund please see the below contact details: Email: investor.relations@360capital.com.au Address: Level 8, 56 Pitt Street, Sydney NSW 2000