| Report Date | 07 September 2010 |
| Manager | Regal Funds Management |
| Fund Name | Regal Tasman Market Neutral Fund |
| Strategy | Equity Market Neutral |
| Latest Return Date | August 2010 |
| Latest Return | 4.41% |
| Latest 6 Months | 12.38% |
| Latest 12 Months | 36.41% |
| Latest 24 Months | 43.97% |
| Annualised Since Inception | 22.92% |
| Inception Date | 03 May 2007 |
| FUM (millions) | AU$30 |
| Fund Overview | The Tasman Market Neutral Fund aims to maximise returns with only moderate risk and little correlation to equity markets. Investments are usually based on fundamental research and may be held for months or years. Hedging is usually achieved through single stock exposures. The fund aims to limit the volatility of returns to less than 15% pa and maintains a beta neutral portfolio. Risk limits (stock, sector, liquidity, systematic etc) are maintained to help achieve the volatility target. Most of the investments are in Australia but investments are also made in other countries on an opportunistic basis (mainly in Europe and no emerging markets). |
| Manager Comments | Asia was the highlight (in terms of return on investment), with the best performing stock being ICBC (Asia), which finished up 25% after a takeover proposal by its 71% parent ICBC. This was the event we had been waiting a long time for and as a result the position was sold. Shorts in Asia also made a small profit.
Australia also performed very well. Unusually, despite the 2% fall in the Australian market, the longs made money and the shorts lost a little.
Some shorts were profitable. For example, Blue Scope Steel fell 10% as the company's refusal to provide guidance resulted in forecast earnings being reduced to more reasonable levels. However a number of shorts lost money. These were largely companies that didn't disappoint the market as much as we expected with their earnings results or, in the case of Woolworths, unexpectedly announced a large off-market share buyback. |
| More Information | » View detailed profile of this fund |
