For the first quarter ended March 31st, 2024, KVF gained $5.65 per share, increasing the value of each share to $68.50. This represents an 11% pre-tax return, comparing well with the S&P 500's 10% return, the Russell 2000's 5% return, and S&P/TSX's 6% return. Currency gains helped returns by $0.66 per share in the quarter.
Multi-baggers Beazer (BZH) and M/I Homes (MHO) were sold after just two years in the portfolio for tremendous profits. These highly volatile stocks provide terrific returns if you can buy when their shareholders are depressed and sell when conditions are exuberant. Fellow home building stocks Genesis Land (GDC), LandSea Homes (LSEA), and Crest Nicholson (CRST) trade off their lows, but I continue to hope for the exuberance bug to bite them as well.
KVF also generated modest profits from the sale of Forza (FORZ), which was taken private by management. KVF generated a loss in Armada (ARD). Armada once traded for good value, but since then it struggled to make money in both down and up markets, causing me to finally throw in the towel.
I'm not sure if valuations were impacted by the war/genocide (pick your preferred noun) or if it's just a coincidence, but KVF added a couple of promising Israeli companies to its portfolio this quarter. Nevertheless, KVF's cash position rose this quarter as there was more stuff to sell than there was to buy, considering how positive the market has been.
KVF's income statement, balance sheet and pre-tax/post-fee returns since inception are included below (click to enlarge). Note that securities are marked to market value, and amounts are in thousands of $CAD:
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