Overall, the quarter was characterised by a recovery in the markets, following the disastrous final quarter of 2018. Except for the special situation of the iron ore sector, however, the recovery in the speculative sector of mine developers remained cautious.
The NESTOR Australia Fund closed out positions in Airline Alliance Aviation Services and the real estate developer Cedar Woods Properties. In the sector of mine developers, positions in Black Rock Mining (graphite) and Highfield Resources were closed out. While Black Rock was sold into rising prices, Hatfield was sold reluctantly and at a loss. Spanish bureaucracy has long prevented the construction of what is actually a very promising potash mine.
With Elixinol Global, the Fund retired from a trading-oriented position in Australia’s largest distributor of cannabis products – the company’s shares reached an untenable valuation on the stock market.
Shares in Telix Pharmaceuticals (+32% ), A2 Milk (+35% ) and Graphex Mining (+21% ) contributed particularly to the positive performance, while Paringa Mining (-24% ) suffered from the delayed start of coal mining, and the chemical company Nufarm (-19% ) was affected by the repercussions of Bayer's litigation in the USA.
Overall, the speculative situation in Australia remains difficult – the trade war in particular is depressing sentiment and preventing investors from turning more to the commodities sector. However, supply and demand are generally positive for price development, such that an end – or at least a weakening – to the trade dispute should have a very positive effect here.