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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 | February 2012 was another example of just that danger according to Optimal, with those heavily-shorted ‘victim’ stocks (cyclical industrials with structural issues - e.g. retail and media) producing the most spectacular re-ratings, as bad earnings news was discounted, and was just not bad enough to provoke anything other than violent short-covering rallies. Optimal noted that statistically the earnings were balanced, with 35% of results ahead of estimates, and 35% missing them, with dividends missing estimates overall. Looking forward the manager believes that future earnings estimates for the ASX200 in FY2013 at 13% growth look ambitious, while those for 2012 are little changed at around 3%. |
| More Information | » View detailed profile of this fund |
