NEWS
The Paragon Fund
11 Feb 2015 - Australian Fund Monitors
The Paragon Fund returned 3.22% (ASX 200 Accum 3.28%) during January 2015 with annual returns at 20.05% (Index 9.25%) with a volatility 12.04% (Index 10.88%).
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11 Feb 2015 - The Paragon Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon accepts that markets are not always efficient in pricing information into securities and that no one investment style works in every stage of the investment cycle. Subsequently Paragon adopts a top down thematic led approach to identify companies exhibiting sustainable or improving returns on capital driven by volume growth, pricing power and competitive advantages. Paragon utilises both quantitative analysis to provide probability weighted high/low/base case valuations and qualitative analysis in assessing management, the business model and likely direction of returns. Paragon will allocate assets to each investment opportunity based on a risk/reward profile. Positions have defined investment parameters and risk limits, which are then monitored on an ongoing basis. |
| Manager Comments | Since inception the Paragon Fund has returned +41.9% after fees vs. the market (All Ordinaries Accumulation Index) +17.1%. Key drivers of the Paragon Fund performance for January included solid returns from industrial firms Qantas and Orora, from our AREIT & Infrastructure stocks, Henderson Group and our gold stock picks. At the end of January the fund had 29 long positions and 14 short positions. |
| More Information | » View detailed profile of this fund |
Morphic Global Opportunities Fund
10 Feb 2015 - Australian Fund Monitors
Morphic Global Opportunities Fund rose 4.42% in January 2015 (Global Equity Index 3.27%) with a volatility of 8.68%.
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10 Feb 2015 - Morphic Global Opportunities Fund
By: Australian Fund Monitors
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| Manager Comments | The New Year began as the old one left off, with a continued decline in the Australian dollar more than offsetting falls in many global markets in local currency terms, especially the US. Of the major markets Europe did best, bolstered by the announcement of a more aggressive than expected programme of money printing by the European Central Bank, but weakness in the Euro partially offset even these gains. The Fund closed the month fully invested, with the main features being overweight positions in China and India against the rest of the emerging market complex, and an overweight position in Europe against the US. The overweight in Europe saw the instatement of a hedge against the Euro through a long position in Danish Krone. Although the two currencies are presently pegged, we believe a likely break in the peg would give us some protection if rising tensions between northern and southern Europe were to result in a messy break-up of the euro-zone. The Fund increased its underweight position in the Australian dollar during the month. |
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Bennelong Alpha 200 Fund
9 Feb 2015 - Australian Fund Monitors
Bennelong Alpha 200 Fund returned 2.18% during January 2015, bringing the fund's annual return to 4.13% since inception.
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9 Feb 2015 - Bennelong Alpha 200 Fund
By: Australian Fund Monitors
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| Fund Overview | The core investment strategy of the Fund consists of the active selection of a series of paired long/short investments in Australian listed equities based upon the Investment Manager's fundamental research. The strategy seeks to capture stock Alpha whilst limiting portfolio exposure to market risk by adopting a dollar neutral portfolio market exposure position with the tactical capability to take net exposure of up to +/- 20% of gross assets. Stock selection is based on fundamental analysis to derive a view of a pair of individual stocks. The Investment Manager is style neutral in determining the stock's positioning. This primary 'pairs' strategy may be enhanced by other complementary strategies, including event driven, security and takeover arbitrage, thematic and momentum trading. The paired stock positions comprise long and short correlated securities that are in most cases simultaneously opened. A portfolio of approximately 30-100 stocks will be selected and actively managed in 15-50 pairs to comprise the core minimum (60%) of the Gross Asset Value. Up to a maximum of 40% of the portfolio's Gross Asset Value may be invested in uncorrelated securities and/or uncovered (long and/or short) positions. These 'satellite' positions are intended to enhance returns and to balance overall portfolio risk. In this regard, the Investment Manager recognises that it is not always possible to achieve a suitable paired profile within the S&P/ASX 200, and that a high conviction long or short stock idea might not always have a suitable pair. |
| Manager Comments | Fund performance was solid in a stronger month for the market. The bulk of the return was derived from the long book, notwithstanding the short book made a small positive contribution which was pleasing in a rising market. A broad range of pairs made a strong contribution to the return, while only one of the negative pairs was significant. Austal / Downer was our largest contributor with both sides making a positive contribution. Downer was weighed down by the sombre mood in the mining industry. Our poorest pair was Altium / UXC, SMS Management, caused by a weak half year sales announcement by Altium. The result was sufficiently different to our forecasts for us to cut the position. We are assessing a new pairing with UXC, SMS. |
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LHC Capital Australia High Conviction Fund Performance Report
4 Feb 2015 - Australian Fund Monitors
LHC Capital Australia High Conviction Fund returned 0.60% for January 2015 and since inception in May 2011 the fund has annualised returned 22.39%. Since inception the fund has recorded 80% positive months compare to the ASX 200 Total...
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4 Feb 2015 - LHC Capital Australia High Conviction Fund Performance Report
By: Australian Fund Monitors
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| Fund Overview | LHC Capital will also seek to identify or encourage events that may act as a catalyst for valuations to converge towards their intrinsic value. The emergence of catalyst events will also have an impact on how LHC Capital allocates the Fund's capital between competing investment opportunities. |
| Manager Comments | This return was achieved with lower volatility of 9.56% compare to the ASX 200 Accumulation Index of 11.89%. Since inception the Sharpe ratio of the fund is 1.86 (Index 0.44). The Fund returned 0.60% over January 2015 and 12.73% over the last 12 month and has recorded 80% of positive months (Index 64%). |
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Monash Absolute Investment Fund
3 Feb 2015 - Australian Fund Monitors
Monash Absolute Investment Fund returned 1.50% during January in a more buoyant month for equity markets.
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3 Feb 2015 - Monash Absolute Investment Fund
By: Australian Fund Monitors
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| Fund Overview | The fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk. The Manager's experience across value, growth and discounted cash flow styles allows them to use a comprehensive approach to investment decisions that applies all three. They also have the patience to seek out only compelling opportunities, rather than settling for relative value. The portfolio is somewhat concentrated, looking to diversify across industries and themes, rather than by trying to stay near an index. The portfolio may at times have a large amount of cash or other protection. However once investments are made turnover may be relatively high in order to lock in gains and avoid losses. |
| Manager Comments | The Fund had a net exposure of 85% and gross exposure of 110% at month-end and a VaR of 1.0%. Since inception (May 2012) Sharpe and Sortino ratios are 1.52 and 3.39 respectively. As we move into the February reporting season we have increased the weights in a number of our 'outlook' stocks. The number of 'event' trades in the portfolio has also picked up. Equity Beta has fallen to half that of the market. |
| More Information | » View detailed profile of this fund |
KIS Asia Long Short Fund
2 Feb 2015 - Australian Fund Monitors
KIS Asia Long Short Fund returned 0.26% during December and 4.76% for 2014 with a volatility of 2.72%.
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2 Feb 2015 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | The Fund has returned 15.16% since inception in October 2009 with a volatility of 5.46%, Sharpe ratio of 2.00 and Sortino ratio of 4.53%. The surprise announcement by the Swiss National Bank regarding the removal of the peg of the Swiss Franc to the Euro has led to less reported significant losses than we would expect. There have obviously been winners and losers but we were surprised not to see an announcement from a corporate of any significant losses as a result of the move. This move emphasizes how dependent the markets have become on well flagged and considered moves by central bankers. We remain unconvinced that the financial measures that have been introduced, such as quantitative easing, actually stimulate the economy. These measures often artificially support financial asset prices, maybe that is their main aim; economies do not tend to thrive as financial asset prices crash! |
| More Information | » View detailed profile of this fund |
Avenir Capital Value Fund
30 Jan 2015 - Australian Fund Monitors
Avenir Value Fund returned -4.42% during December 2014 with annual performance of 15.38% and volatility of 11.11% since inception.
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30 Jan 2015 - Avenir Capital Value Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will invest in securities where Avenir believes the company is simply mis-priced and deeply undervalued and offers significant potential for revaluation. The Fund will also invest in companies that are subject to specific corporate events such as mergers, acquisitions, restructurings, recapitalisations, spin-offs, demergers, management change, distressed situations, and other sharply delineated corporate events. The Fund will also selectively invest in short positions in companies where Avenir believes the company is significantly overvalued or where the company's business model is broken or structurally challenged. |
| Manager Comments | The Fund's Sharpe and Sortino ratio are 1.07 (Index 0.69) and 1.77 (Index 0.96) respectively. At month-end the Fund's geographic exposure was US 42%, W. Europe 13% Asia 14% Australia 1%, Other 10% with cash at 22%. |
| More Information | » View detailed profile of this fund |
Fund Review: Aurora Fortitude Absolute Return Fund December 2014
30 Jan 2015 - Australian Fund Monitors
Aurora Fortitude Absolute Return Fund has produced annualised return of 7.38% with annualised volatility of 2.71% against the ASX200 Accumlation return of 7.29% with annualised volatility of 13.88%. The fund has reported 85.59% of positive...
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30 Jan 2015 - Fund Review: Aurora Fortitude Absolute Return Fund December 2014
By: Australian Fund Monitors
AURORA FORTITUDE ABSOLUTE RETURN FUND
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
We would like to highlight the following aspects of the Fund;
- The Aurora Fortitude Absolute Return Fund (AFARF) has a 10 year track record investing in ASX listed equities. A Market Neutral overlay is used across a multi strategy approach which allows for flexible asset allocation to maximise returns and minimise risk under a variety of market conditions and cycles.CIO John Corr has over 20 years financial market experience with a strong focus on risk.
- Significant use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation. Risk statistics are impressive and shows the Funds risk philosophy; over 86% of monthly performances have been positive with no losing months in 2008, annualised standard deviation of 2.71%, the Fund's largest drawdown is -2.09% and the Sharpe ratio 1.05.
- ASX listed Aurora Funds Limited was established on the merger of three existing fund management businesses, managing approximately $230m on behalf of more than 2,500 retail and wholesale investors.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Fund Review: Bennelong Long Short Fund AFM Fund Review December 2014
30 Jan 2015 - Australian Fund Monitors
The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index and has produced an annualised return of 17.25% against the broader ASX200 Accumulation...
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30 Jan 2015 - Fund Review: Bennelong Long Short Fund AFM Fund Review December 2014
By: Australian Fund Monitors
Bennelong Long Short Equity Fund December 2014 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, and has produced an annualised return of 17.25% against the broader ASX200 Accumulation return of 8.11%.
- The consistent returns across the investment history indicates the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market.
- Fund performance was muted for the month as the market drifted without any strong thematic and investors were subject to merger and acquisition activity/speculation, yield/defensive buying and stock specific issues. Our assessment is that the April factors that negatively impacted fund returns, which were of a more global nature, were persisting early in the period but since have abated. Fund activity was limited in May as our view of market fundamentals have not really changed.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Bennelong Long Short Equity Fund December 2014 (pdf format)
Fund Review: Alpha Beta Asian Fund AFM Fund Review December 2014
29 Jan 2015 - Australian Fund Monitors
Alpha Beta Asian Fund, an Asian Quantitative Fund, returned 4.01% over the last 12 months, with a volatility of 5.15%. Since inception the fund has returned 22.50%. The Fund CPD Points available for reading the review.
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29 Jan 2015 - Fund Review: Alpha Beta Asian Fund AFM Fund Review December 2014
By: Australian Fund Monitors
ALPHA BETA ASIAN FUND
AFM has updated the Fund Review on the Alpha Beta Asian Fund.
CPD Points are now available for all AFM Fund Reviews. Read the review and answer 5 questions to earn half a point toward your continuing professional development.
Key points include:
- The Fund The Alpha Beta Asian Fund invests in Asian listed equity markets with a focus on liquid companies in Australia, Japan, Hong Kong, Indonesia, Philippines and Thailand. The Fund uses a systematic approach to evaluate macroeconomic, company fundamental and price data, all of which are evaluated through a series of quantitative models.
- Sydney based Alpha Beta Capital was established by Andrew Barry and Ken Lewis in May 2012. Both Barry and Lewis have significant qualifications and international experience in funds management, including working together at Coronation International, a global multi-strategy hedge fund group in London.
- The Strategy relies on a number of core beliefs: Firstly that a well designed systematic investment process, operating within a multi-strategy framework will be able to extract consistent returns, on average, with low volatility. Secondly, by utilising holding periods substantially shorter than the industry-norm, profit opportunities consistently arise. Finally, a strategy that holds a large number of small positions versus a small number of concentrated positions, will remove much of the emotional angst of trading, and the investment process becomes repeatable.
- In keeping with the Manager's overall systematic approach the Risk Management includes real time monitoring of positions and market exposure, and is combined into a proprietary and automated system called PARMS (Portfolio and Risk Management System). PARMS is a centralised and integrated system which provides full functionality including stress testing.
For further details on the Fund, please do not hesitate to contact us.
Sean Webster
Research and Database Manager
Australian Fund Monitors
