| Report Date | 07 July 2010 |
| Manager | K2 Asset Management |
| Fund Name | K2 Asian Absolute Return Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | June 2010 |
| Latest Return | -0.50% |
| Latest 6 Months | -9.36% |
| Latest 12 Months | 6.33% |
| Latest 24 Months | 5.18% |
| Annualised Since Inception | 12.12% |
| Inception Date | 01 September 1999 |
| FUM (millions) | AU$165 |
| Fund Overview | The investment team does not use a single approach to stock picking, rather, each investment manager brings their own investment style and methodology to the portfolio. Key variables of earnings, valuation and management are examined to determine whether securities are over or undervalued. The investment team's ability to pick major investment themes, or 'catalysts', in a timely manner is a key competitive advantage. The stock selection process is based on the investment manager's own primary research, direct contact with companies and subscriptions to independent research houses. The Fund actively manages currency exposure with the aim of using hedging to reduce the risk of currency movement and protect stock returns. The level of hedging will depend on K2's expectation of future currency exchange rate movements. |
| Manager Comments | K2's Asian Absolute Return was their best performing fund in June with exposure in most countries changed little. Further positions in banking and property increased the fund's exposure to Singapore (+3.1%), while exposure to Thailand (-2.8%), Korea (-2.0%), and Hong Kong (-1.9%) was reduced.
While growth rates are holding up in most countries in the area, the manager is concerned about how much impact the rate of growth in developed countries will have in Asia. It is likely that K2 will maintain exposure at or below current levels over the next month, but as valuations are now providing some support any exposure reduction is likely to be small. |
| More Information | » View detailed profile of this fund |
