| Report Date | 11 January 2011 |
| Manager | Agora Asset Management |
| Fund Name | Agora Absolute Return Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | December 2010 |
| Latest Return | 3.42% |
| Latest 6 Months | 8.62% |
| Latest 12 Months | -2.12% |
| Latest 24 Months | 21.35% |
| Annualised Since Inception | 8.24% |
| Inception Date | 18 March 2004 |
| FUM (millions) | US$161 |
| Fund Overview | The Fund invests in long and short positions in securities listed or to be listed on the Australian Stock Exchange. All positions are driven by fundamental research which incorporates both bottom up stock specific research and top down macro theme analysis. The process utilises in depth stock research from Agora's internal analysis to identify the best risk adjusted long and/or short trading opportunities based on expected share price movements. The mix of long and short positions is entirely reliant on the number of opportunities identified and can vary significantly depending upon market conditions. Agora is a very active manager and likes to be able to act quickly at all times so this sees the Fund have a bias toward more liquid (large cap/top 120) stocks as these provide greater liquidity and therefore meaningful opportunity for Agora's concentrated positions and size. The portfolio usually invests in no more than 20 stocks. Position weights are typically between 2.5%-5% of fund value with the same position size and risk management parameters applied equally to both long and short positions. The portfolio benefits equally over time from short term (20 days) trading opportunities and medium term (2 quarters) investments. Total fund equity exposure is unconstrained and is an outworking of the bottom up, stock specific positions identified however as an indication calendar year 2007 saw an average net equity exposure of 60%. The fund does not employ leverage therefore gross equity exposure cannot exceed +100%. The fund is previously known as the Alpha Absolute Return Fund No. 2 |
| Manager Comments | Agora's Absolute Return Fund ended the year with a positive December result to cap off a strong six months.
Agora believes that as long as US growth continues to improve and China is seen to be managing its domestic concerns regarding inflation - without prejudicing growth, then the outlook for equities is positive.
However continued concerns about European debt will remain a negative influence on global risk, and expects a volatile reporting period ahead.
The portfolio maintains a strong exposure to resources, concentrated in the more liquid large cap area, and continues to add exposure to $US denominated earnings while looking to add exposure to domestic cyclicals at the right time.
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| More Information | » View detailed profile of this fund |
