VIVHY - East 72 Dynasty Trust Q1 2024 Quarterly Report
2024-04-11 10:15:00 ET
Summary
- East 72 Holdings is a unique Australian publicly listed investment company listed on the National Stock Exchange of Australia and is a leveraged investment company.
- We have a slightly different quarterly report focused on components of investee companies which we view as exceptional businesses, rather than a major exposition of the whole.
- We discuss amazing businesses “hidden” within structures which offer significantly discounted entry to the underlying asset, but where this publicly listed vehicle is the only avenue to invest in these enterprises.
Performance and net asset value
- Quarterly return † : 6.76%
- NET ASSET VALUE PER UNIT AT 31 MARCH 2024 † : $1.1418
| † after all ongoing and performance fees. High watermark at 31 March 2024 is $1.1447/unit |
Yes, we have a new font. Plus a slightly different quarterly report focused on components of investee companies which we view as exceptional businesses, rather than a major exposition of the whole. Obviously, we do have regard to the valuation of the entire entity. "Hidden Gems" if you will.
These quarterly reports are not financial/equity market commentaries; you can find thousands of those elsewhere. But it's fair to say that the March quarter was a euphoric speculative frenzy which we struggle to believe will end well. Seeing bitcoin rise by two-thirds, as a starting point and with numerous double-digit gains in equity indices ( DAX +10.5%; Euro 50 + 12.6%; SP500 +10.1% and Nikkei +21.8%) bodes badly for future returns. Even the NASDAQ100 ( NDX , +8.5%) couldn't keep pace. We are keener than ever to check that we are not caught up in the euphoria and don't hold securities dependent upon outlandish asset or security valuations.
Fifteen stocks within Dynasty Trust contributed over 0.25% each to overall quarterly performance, illustrating the widening of equity market participation away from narrow technology-based securities as the quarter progressed. The largest contributors to performance - which measures stock price change adjusted for weighting (so that a 4% position rising 10% adds more than a 1% position rising 30%) - were Softbank Group Corp ( SFTBY , +44% to sale), D'Ieteren Group ( SIETY, +16.2%), MFF Capital Investments (+17.7%), Catapult International ( CAZGF ,+12.3%), Sphere Entertainment ( SPHR , +23.4% to sale), and Compagnie de l'Odet ( FCODF , +7.8%). Two significant detractors in the quarter were Ocado Group PLC ( OCDGF ) and Manchester United ( MANU ).
Dynasty Trust's top twenty positions as at 31 March 2024 as a percentage of net asset value are:
| Compagnie de L'Odet ( FCODF ) |
| 4.75% |
| Swatch Group ( SWGAY ) |
| 2.82% |
| Catapult International ( CAZGF ) |
| 4.15% |
| Canadian General Investments ( CGRIF ) |
| 2.78% |
| D'Ieteren Group ( SIETY ) |
| 3.78% |
| Virtu Financial ( VIRT ) |
| 2.78% |
| Vivendi ( VIVHY ) |
| 3.50% |
| E-L Financial Corp ( ELFIF ) |
| 2.74% |
| Société des Bains de Mer ( BMRMF ) |
| 3.12% |
| Harworth Group PLC |
| 2.63% |
| Bolloré ( BOIVF ) |
| 3.08% |
| Occidental Petroleum ( OXY ) |
| 2.61% |
| Hong Kong and Shanghai Hotels ( HKSHF ) |
| 3.05% |
| Fairfax Financial Holdings ( FRFHF ) |
| 2.60% |
| Fairfax India Holdings ( FFXDF ) |
| 2.99% |
| Robertet SA ( RBTEF ) |
| 2.59% |
| MFF Capital Investments |
| 2.96% |
| HAL Trust ( HALFF ) |
| 2.53% |
| Magellan Financial ( MGLLF ) |
| 2.84% |
| Christian Dior ( CHDRF ) |
| 2.52% |