| Report Date | 17 June 2010 |
| Manager | Fortitude Capital |
| Fund Name | Fortitude Capital Absolute Return Trust |
| Strategy | Equity Market Neutral |
| Latest Return Date | May 2010 |
| Latest Return | 0.91% |
| Latest 6 Months | 1.74% |
| Latest 12 Months | 4.81% |
| Latest 24 Months | 15.77% |
| Annualised Since Inception | 10.10% |
| Inception Date | 15 February 2005 |
| FUM (millions) | AU$25 |
| Fund Overview | Fortitude Capital Absolute Return Trust is a multi-strategy market neutral fund specialising in listed Australian equities and derivatives. The core philosophy is the management of risk through a long volatility overlay incorporating listed equity and index derivatives. The multi-strategy approach includes M&A, Yield, Convergence and Long/Short strategies. The portfolio managers adopt an aggressive approach to managing downside risk whilst positioning the portfolio to benefit from positive alpha. |
| Manager Comments | Fortitude credits their Absolute Return Trust's long volatility option overlay with helping the fund to achieve a +0.91% return in what was a very difficult month for most managers. The standout names in the fund's option trading portfolio were the SPI 200, BHP Billiton, and Rio Tinto, all of which experienced large falls.
Small positions in the fund's merger and event portfolio detracted from performance, including MCC and CEY which the fund has now exited. The yield portfolio has been resilient during recent volatility and the manager remains confident that owning quality short dated names will produce solid returns over time. |
| More Information | » View detailed profile of this fund |
