| Report Date | 05 August 2010 |
| Manager | K2 Asset Management |
| Fund Name | K2 Asian Absolute Return Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | July 2010 |
| Latest Return | 4.36% |
| Latest 6 Months | -0.77% |
| Latest 12 Months | 0.46% |
| Latest 24 Months | 11.56% |
| Annualised Since Inception | 12.46% |
| Inception Date | 01 September 1999 |
| FUM (millions) | AU$163 |
| 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 | The best performing fund for K2 in July was their Asian Absolute Return Fund with an increase of +4.36%. Markets in the region were led higher by China (+12.5), Taiwan (+8.4%), Thailand (+7.4%) and Indonesia (+6.0%).
While markets remain volatile, the manager believes that fears of a double-dip recesion are receding. Signs that conditions are improving in China have helped markets in the region to perform better after an extended period of underperformance.
August is often a poor month for Asian equities, in part due to the summer break, however K2 believes that there is a high level of cash being held by investors and there are signs from fund flows to suggest that allocations to Asian equities are increasing. |
| More Information | » View detailed profile of this fund |
