| Report Date | 01 February 2011 |
| Manager | K2 Asset Management |
| Fund Name | K2 Asian Absolute Return Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | January 2011 |
| Latest Return | 0.53% |
| Latest 6 Months | 9.95% |
| Latest 12 Months | 9.10% |
| Latest 24 Months | 51.45% |
| Annualised Since Inception | 12.82% |
| Inception Date | 01 September 1999 |
| FUM (millions) | AU$182 |
| 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 | K2's Asian Absolute Return Fund had a positive return of +0.53% January in spite of significant market falls in a range of Asian markets as investors became increasingly nervous regarding the Asian inflation outlook.
Although the broader MSCI Asia (ex Japan) index rose 1.2% for the month in AUD terms, this masked significant falls in India (-10.6%), The Philippines (-7.6%), Thailand (-6.6%) and Indonesia (-6.5%), while Korea, Taiwan and Hong Kong all gained ground.
At month end the fund's exposure in Australia was lifted to 30%, at the expense of China/Hong Kong and Singapore, although exposure to China still remained around 30%. |
| More Information | » View detailed profile of this fund |
