The Bennelong Kardinia Absolute Return Fund returned 1.08 per cent in August, saying most key positions in the portfolio reported solid results during profit reporting season.
CSL Limited (ASX:CSL) shares were the biggest contribution to the fund for the month after delivering a profit result that beat its upgraded guidance from May.
The fund said the CSL result was driven by continued strong immunoglobulin volume growth and market share gains due to the addition of a substantial number of plasma collection centres.
The CSL share price gained almost 16 per cent in August, and is the fund’s largest position.
Afterpay Touch (ASX:APT) were another strong contributor, the share price rallying after raising $117m via an institutional placement to fund its international expansion strategy in the US and UK, with the US market showing good early momentum.
Afterpay shares gained almost 30 per cent in August.
WorleyParsons (ASX:WOR) shares benefited from several contract wins and a result that demonstrated the upswing in the profit cycle is now well underway. The WorleyParsons share price gained 11 per cent in August.
Seven Group (ASX:SVW) delivered a result and guidance that were above consensus expectations, driven by a cyclical upswing in equipment capex and rental demand. Lead indicators in mining and civil markets were positive, with improved forward orders and increasing lead times for equipment.
The Seven Group Holdings share price rose almost 9 per cent in August. It is the fund’s fourth largest holding.
A2 Milk (ASX:A2M) reported a strong result with net profit up 116 per cent driven by strong infant formula sales growth and market share gains.
The A2 Milk share price gained almost 20 per cent in the month of August.
Detractors in August included Origin Energy (ASX:ORG), its share price falling after issuing weak FY19 guidance for its Energy Markets business due to electricity hedging costs and the impact of political pressure on energy prices.
Origin shares fell over 18 per cent in August. The fund said it sold Origin shares.
Rio Tinto (ASX:RIO) shares pulled back after its result confirmed that cost inflation was beginning to impact profits. This was despite declaring a 15 per cent increase to the dividend and a US$1b top-up to its existing share buyback.
The Rio share price fell 11 per cent in August, a month that saw share price weakness in many mining shares.