April 2021 - Luke's Global Fund Performance Update
Luke's Global Fund achieved a return of 5.7% (in constant currency) return over the month of April, and a 32.5% gain to date for FY21 on a constant currency basis. Our International benchmark ended April up over the month, with the S & P 500 returning 4.0% for the month of April.
Our portfolio as at April 30, 2021:
The portfolio recovered in April, following a severe drawdown of growth companies in March.
Over the month, Teladoc Health released their Q1 2021, as follows:
Teladoc Health (TDOC)
Teladoc Health reported revenue was up 96% year on year (YOY) for Q1 2021 (compared to combined Teladoc Health and Livongo Health Q1 20202 revenue), at $453.7 million USD. Operating cashflow was -$18 M USD, down from -$8 M USD in the previous corresponding period. Key takeaways were:
· Raised full year guidance to $1.97-2.02 Billion USD.
· Number of paid members was down slightly on Q4 at 51.5 M members.
· Number of US visits was up on Q4 by 8%.
· Number of consumers enrolled on more than one chronic care program tripled year over year, as Teladoc Health focuses on creating a broader health solution.
· Reported favourable consumer trends, particularly among Millennials, who show a stronger propensity to use digital health compared to other generations.
· Net loss was -$199.6 Million, significantly higher than the previous corresponding period, primarily due to compensation, amortisation, and tax charges attributable to the acquisition of Livongo and InTouch Health.
Mr Market reacted adversely to Teladoc Health’s quarterly report, seemingly concerned with slowing visit and membership growth, with investors wary of the recently merged Teladoc Health / Livongo Health entity. However, guidance for Q2 is reasonably strong, with Teladoc Health guiding for revenue growth 10%, despite Q2 usually being a seasonally slow quarter for Teladoc Health
There was little in the way of changes to report for the month.
If you have any opinions on the companies we hold, or would like to know more about our investments, we would love to hear your feedback.