| Report Date | 13 July 2010 |
| Manager | Fortitude Capital |
| Fund Name | Fortitude Capital Absolute Return Trust |
| Strategy | Equity Market Neutral |
| Latest Return Date | June 2010 |
| Latest Return | -0.49% |
| Latest 6 Months | 0.42% |
| Latest 12 Months | 2.70% |
| Latest 24 Months | 14.99% |
| Annualised Since Inception | 9.62% |
| 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 | The bulk of the returns generated by Fortitude's Absolute Return Trust in June were from the yield portfolio, and most of this came from the redemption of the Hasting Funds Taps trust. This was the largest position within the portfolio and the manager will be looking to replace this with similar risk/return exposure when appropriate opportunities arise.
The risks of investing based on corporate activity have been highlighted for the fund as the takeover agreement between Zijin Mining Group and Indophil resources has been terminated after a six month process. The deal seems to have fallen over due to the actions of a provincial governor in the Philipinnes banning open pit mining, however the incoming governor is reviewing the ban which may contravene national law. Fortitude will monitor the situation and keep investors informed as developments unfold. |
| More Information | » View detailed profile of this fund |
