Minotaur Monthly
September 2024
Performance
Period
Return
1 Month
+1.3%
3 Months
+5.5%
Commentary

The market was choppy in September, but our fund marched on, ending up 1.3%. Diversity again shone through with both wins and losses broad-based - our top 5 and bottom 5 movers all came from different countries and sectors.

Once again, macro news dominated the picture, the major piece being the Federal Reserve’s move to cut US interest rates by 50 basis points. This was designed to preserve the strength of the US economy amid mounting risks to the labour market. Fed Chair Jerome Powell said that taking the step now would help to limit the chance of a full-blown downturn, while being careful to avoid committing to this as the new pace for rate reductions. Despite this, traders ramped up their bets on more cuts to come, with more than 70 basis points of reductions forecast for the rest of this year.

Another big macro event was the announcement of new stimulus in China with the People’s Bank of China (PBOC) Governor announcing a suite of unprecedented measures aimed at stabilising and supporting the stock market and stimulating the economy. This included cutting the key interest rate and plans to reduce the amount of money banks need to hold in reserve in order to boost lending, as well as a package of measures to shore up the property sector. China shares soared off the back of this and our best performer this month was Alibaba as a result. We have become more constructive on China.

A global trend where we’ve seen Europe lead the US and other regions is the pick up in M&A. We saw this with our holding in Commerzbank, which was our second biggest mover after Unicredit announced a near 21% stake in the company.

Notwithstanding the macro trends, many of the stock moves in our portfolio were idiosyncratic - our holding in iPerionX, for example, rose after announcing a binding supply contract with Ford for Ti metal powder and auto components, providing a key point of validation for the stock. In contrast, Adobe fell after the absence of any AI-related uplift to sales in its outlook, which failed to quell investor impatience.

The macro in these early innings has been challenging but our job is to do our best to navigate it and we are pleased enough with how we’ve done so far given the outperformance. As Epictetus says, "The greater the difficulty, the more glory in surmounting it. Skillful pilots gain their reputation from storms and tempests."

Portfolio
Top 10 Holdings
(alphabetical)
CD Projekt logo
CD Projekt
CD Projekt is a Polish video game developer, best known for their immersive, story-driven RPG games. Their flagship titles, The Witcher series and Cyberpunk 2077, have captivated millions of players worldwide. With a focus on creating unforgettable characters and rich, detailed worlds, CD Projekt continues to push the boundaries of interactive storytelling.
Poland Flag
Poland
Communication Services
Mid Cap
 
Chugai Pharmaceutical logo
Chugai Pharmaceutical
Chugai Pharmaceutical is a leading Japanese biopharmaceutical company dedicated to advancing innovative medicines. As a subsidiary of Roche, Chugai leverages cutting-edge research to develop treatments for cancer, autoimmune diseases, and rare disorders, striving to create a healthier future for people worldwide.
Japan Flag
Japan
Health Care
Large Cap
 
Cie de Saint-Gobain logo
Cie de Saint-Gobain
Cie de Saint-Gobain is a French multinational corporation with a 350-year history. As a global leader in sustainable construction materials, Saint-Gobain designs and manufactures innovative solutions for buildings, transportation, and industrial applications, focusing on creating a greener, more comfortable future.
France Flag
France
Industrials
Large Cap
 
COVER Corporation logo
COVER Corporation
COVER Corporation is a Japanese tech company specialising in virtual YouTubers (VTubers). Creator of the popular Hololive agency, COVER combines live streaming with talent management akin to K-pop agencies and character-driven appeal similar to pro wrestling. By blending anime aesthetics with engaging personalities, COVER is pioneering a new era of digital entertainment.
Japan Flag
Japan
Communication Services
Small Cap
 
Crown Castle logo
Crown Castle
Crown Castle is a leading American real estate investment trust (REIT) specialising in shared communications infrastructure. As the largest provider of wireless infrastructure in the US, Crown Castle owns, operates, and leases a vast network of cell towers, small cells, and fibre optic cables. By enabling seamless connectivity for mobile carriers and enterprises, Crown Castle plays a crucial role in supporting the growing demand for 5G technology and digital communication across the nation.
United States Flag
United States
Real Estate
Large Cap
 
Dynatrace logo
Dynatrace
Dynatrace is a software intelligence company specialising in application performance monitoring and IT operations analytics. Their AI-powered platform provides real-time insights into complex, multi-cloud environments, helping organisations optimise digital experiences, streamline IT operations, and accelerate cloud migration. By offering comprehensive observability across applications, infrastructure, and user experience, Dynatrace enables businesses to innovate faster and more efficiently in today's dynamic digital landscape.
United States Flag
United States
Information Technology
Large Cap
 
IperionX logo
IperionX
IperionX is an innovative Australian materials technology company focused on developing sustainable titanium production methods. By leveraging patented technologies, IperionX aims to offer a more cost-effective and environmentally friendly alternative to traditional titanium manufacturing processes. Their approach has potential applications across various sectors, including aerospace, automotive, and medical industries, positioning IperionX at the forefront of sustainable metal production.
Australia Flag
Australia
Materials
Small Cap
 
Meta Platforms logo
Meta Platforms
Meta Platforms, formerly known as Facebook, is a global technology company that connects people through social media and beyond. With a mission to build community, Meta owns and operates apps like Facebook, Instagram, and WhatsApp, while also investing in the development of the metaverse, a shared virtual space.
United States Flag
United States
Communication Services
Mega Cap
 
Prysmian logo
Prysmian
Prysmian is an Italian multinational company and world leader in the energy and telecom cable systems industry. With a global presence, Prysmian designs and produces a wide range of cable solutions for power transmission, distribution, and communication networks, helping to build a more connected, energy-efficient world.
Italy Flag
Italy
Industrials
Large Cap
 
United Overseas Bank logo
United Overseas Bank
United Overseas Bank (UOB) is a leading Singaporean multinational banking organization with a strong presence in Asia. Established in 1935, UOB provides a wide range of financial services to help individuals and businesses achieve their goals, leveraging technology to create smarter, more convenient banking solutions.
Singapore Flag
Singapore
Financials
Large Cap
 
Market Cap
Mega Cap US$200bn+
17.0%
Large Cap US$10-200bn
50.2%
Mid Cap US$2-10bn
11.8%
Small Cap US$300m-2bn
15.0%
Micro Cap Under US$300m
0.9%
Invested Position
Gross Long
98.8%
Gross Short
3.9%
Net Exposure
95.0%
Number of Long Positions
41
Number of Short Positions
3
Regions
North America
32.3%
United States flag
United States
30.8%
Canada flag
Canada
1.4%
Europe
33.8%
France flag
France
9.8%
United Kingdom flag
United Kingdom
7.9%
Poland flag
Poland
6.3%
Italy flag
Italy
5.5%
Spain flag
Spain
2.0%
Germany flag
Germany
1.9%
Finland flag
Finland
0.4%
Asia Pacific
28.9%
Japan flag
Japan
13.7%
Singapore flag
Singapore
5.2%
China flag
China
4.9%
Australia flag
Australia
3.0%
Hong Kong flag
Hong Kong
2.1%
Sectors
Energy
1.8%
Materials
4.6%
Industrials
14.0%
Consumer Discretionary
6.3%
Consumer Staples
6.0%
Health Care
7.7%
Financials
9.9%
Information Technology
15.9%
Communication Services
21.3%
Utilities
5.7%
Real Estate
1.7%
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Minotaur Capital Management Pty Ltd (ABN 17 672 819 975) is a corporate authorised representative (CAR 1308265) of Minotaur Licensing Pty Ltd (ABN 86 674 743 198) (AFSL 557080). The Minotaur Global Opportunities Fund is issued by K2 Asset Management Ltd (ABN 95 085 445 094, AFSL 244393), a wholly owned subsidiary of K2 Asset Management Holdings Ltd (ABN 59 124 636 782).

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