For the second quarter ended June thirtieth, 2021, KVF gained $4.98 per share, growing the worth of every share to $40.86. This pre-tax 17% quarterly return bested the 8% returns of the S&P 500 and S&P/TSX, and the 4% return of the Russell 2000. Forex modifications had been as soon as once more a headwind, lowering returns by $0.33 per share within the quarter.
KVF’s string of fine luck continued, as a lot of holdings erupted in a optimistic method. BSEG and SGMD had been illiquid holdings that was high-volume multi-baggers over the course of the quarter, whereas FRD was additionally a powerful performer (mentioned right here). KVF now not owns shares in these three corporations.
Market costs are very frothy proper now, calling for excessive prudence in my view. KVF’s money stability continues to rise as positions are offered off. With out reducing requirements, it doesn’t seem doable to interchange these positions with securities containing sufficient margins of security. So, persistence is required as the availability of securities catches up with demand, which is a course of that will finally carry markets again in stability.
KVF’s earnings assertion and stability sheet are included under (click on to enlarge). Notice that securities are marked to market worth, and quantities are in 1000’s of $CAD: