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| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. |
| Manager Comments | The Manager commented that the strong A$ is continuing to bear down on the Australian equity market: First, it is giving offshore investors a strong incentive to sell the local market, as they are making so much more money on the currency than on underlying stocks. Second, it is putting additional pressure on the continuing industrial earnings downgrade cycle through offshore earnings translation and increased import competition. Optimal continue to believe that the key drivers of world equity pricing remain the gradient of the US economic recovery, the attitude of the Fed towards contingent monetary support, and whether China can slow (having raised lending rates again and lifted reserve requirements for the fourth time this year) without stumbling. Exposure at month end was 58.3% long, 40.2% short (including equity derivatives) for a gross exposure of 98.4 and net exposure of 18.1%. |
| More Information | » View detailed profile of this fund |
