| Report Date | 03 November 2010 |
| Manager | Regal Funds Management |
| Fund Name | Regal Amazon Market Neutral Fund |
| Strategy | Equity Market Neutral |
| Latest Return Date | October 2010 |
| Latest Return | 4.58% |
| Latest 6 Months | 11.78% |
| Latest 12 Months | 15.23% |
| Latest 24 Months | 59.30% |
| Annualised Since Inception | 23.44% |
| Inception Date | 17 June 2005 |
| FUM (millions) | US$156 |
| Fund Overview | The Amazon Market Neutral Fund aims to generate positive returns, with low levels of risk. The Fund attempts to be uncorrelated with equity market and targets volatility of less than 15%. Risk limits (stock, sector, liquidity, etc) are maintained to help achieve this volatility target. Though its investments are global, Regal aims to have over half of its investments in the Asian region, with a heavy emphasis on Australia. Investments are concentrated in sectors where the investment manager believes he has an advantage (through superior research and/or analysis). Research and analysis are conducted from a fundamental basis. Investments are viewed from both a bottom-up and top-down perspective. Catalysts are identified where possible. Most hedging is done through single stocks. The Fund has the flexibility to invest (both long and short) in a wide range of investment instruments including, but not limited to, all types of equity, debit and hybrid securities, foreign exchange, options, warrants, futures and derivatives. |
| Manager Comments | Regal's Amazon Market Neutral fund continues to outperform, with both long and short positions adding to positive performance. The largest winner for the month was a short position in Blue Scope Steel, down 9% for the month, which Regal believe could downgrade profits at the AGM on 11 November.
Other positive performances included a long standing position in Citadel, which rallied following a takeover offer, although Regal believe the proposal still undervalues the company, and retains the position. In the financial sector Challenger rose 9% for the month, while a short position in Perpetual lost money following a bid from KKR.
The Asian positions made a very good return on the small amount of capital invested.
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| More Information | » View detailed profile of this fund |
