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10 Nov 2010 - Performance Report: Bennelong Securities Long Short Equity Fund

By: Australian Fund Monitors
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Report Date08 November 2010
ManagerBennelong Group
Fund NameBennelong Securities Long Short Equity Fund
StrategyEquity Market Neutral
Latest Return DateOctober 2010
Latest Return1.23%
Latest 6 Months8.45%
Latest 12 Months11.36%
Latest 24 Months38.94%
Annualised Since Inception21.87%
Inception Date01 January 2003
FUM (millions)AU$145
Fund OverviewBennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost.
Manager CommentsBennelong's overall portfolio performed solidly in October, however the short portfolio was adversely impacted by two proposed corporate transactions in the financial sector. At the sector level best performances were consumer discretionary and healthcare, whilst industrials and financials underperformed.

The manager reported an increased confidence in their short term outlook for equities as global liquidity builds and monetary policy settings accommodate asset price gains. In addition the apparent strength in corporate balance sheets and earnings is likely to stimulate employment, consumer confidence and additional corporate activity. The manager's longer term outlook remains one of caution as system imbalances and the inevitable stimulus withdrawal are still to be addressed.

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