For the second quarter ended June thirtieth, 2021, KVF gained $4.98 per share, rising 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 have 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 quite a few holdings erupted in a constructive manner. BSEG and SGMD have been illiquid holdings that changed into 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 for my part. KVF’s money steadiness continues to rise as positions are offered off. With out decreasing requirements, it doesn’t seem potential to switch these positions with securities containing ample margins of security. So, persistence is required as the provision of securities catches up with demand, which is a course of which will ultimately deliver markets again in steadiness.
KVF’s revenue assertion and steadiness sheet are included beneath (click on to enlarge). Observe that securities are marked to market worth, and quantities are in 1000’s of $CAD: