| Report Date | 05 May 2011 |
| Manager | AR Capital Management |
| Fund Name | AR Capital - Ascot Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | April 2011 |
| Latest Return | 0.75% |
| Latest 6 Months | 2.48% |
| Latest 12 Months | 2.71% |
| Latest 24 Months | 16.76% |
| Annualised Since Inception | 11.03% |
| Inception Date | 01 August 2005 |
| FUM (millions) | AU$86 |
| Fund Overview | The Ascot Fund is an absolute return fund with long/short capability, investing in Australian/NZ equities, derivatives and hybrid instruments with a focus on the ASX 200. Fundamental analysis, market timing and risk management are essential components of the fund's strategy. The fund manager, AR Capital Management (ARCM), has an investment team with over 50 years' aggregate market experience, and the owners of ARCM account for approximately 20% of the total units in the fund. |
| Manager Comments | AR Capital produced an estimated positive net return for April of 0.75% with gains coming from short positions in BHP (post the buyback) CSL, and the overall market via index puts. On the long side the Banks (National Australia Bank and Westpac) Equinox, Fairfax Converting Prefs, AMP, Crown Limited, Graincorp and Metminco all contributed positively to performance.
The Manager feels it is time to remain cautious given the USA's need to get their fiscal position under control will mean lower growth than currently forecast. Australia's restrictive monetary policy, high A$ and domestic household budget pressure are also creating economic headwinds, while Asian growth economies are facing challenging inflationary pressures at the same time as trying to maintain reasonable growth.
As a result the Fund retains a relatively small net market exposure (April average was net 21.7% long) with index and stock specific puts providing downside protection against preferred long positions.
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| More Information | » View detailed profile of this fund |
