| Report Date | 11 May 2010 |
| Manager | MM&E Capital Limited |
| Fund Name | MM&E Capital Investment Trust No. 1 |
| Strategy | Event Driven |
| Latest Return Date | April 2010 |
| Latest Return | 0.83% |
| Latest 6 Months | 1.86% |
| Latest 12 Months | 5.24% |
| Latest 24 Months | -2.39% |
| Annualised Since Inception | 7.40% |
| Inception Date | 01 July 2002 |
| FUM (millions) | AU$19 |
| Fund Overview | The fund is an event-driven Australian equities fund with a short-term perspective (six months or less). It aims to earn positive returns irrespective of overall moves in related market indices. Its investment strategies include merger/takeover arbitrage, convertible/preference share arbitrage, placements/sell downs, IPOs, rights issues and share buybacks. The fund holds liquidity in floating-rate income securities, buy and write situations, and cash. The fund hedges a significant proportion of its long positions with short positions and/or written call options. All of the Trust's investments are in securities listed on either the ASX or the SFE (except, on occasion, where the shares of a foreign company are short-sold to hedge the takeover of an ASX-listed company). It allocates a maximum 20% of funds in any situation and requires committee approval for investments above 5%. A stop-loss is incorporated at 20%. |
| Manager Comments | In a month when sharemarkets fell, MM&E Capital's Investment Trust No. 1 was happy to achieve a positive return of 0.83%.
The manager took advantage of takeover situations including the contested bidding war for zinc and lead producer CBH Resources, and the purchase of Aurox Resources by Atlas Iron.
In convertibles the fund benefitted from increasing value of Paperlinx's Redeemable Preference Shares while a put-protected position in Telstra also rose ahead of an expected resolution with the Federal Government over the NBN issue. |
| More Information | » View detailed profile of this fund |
