| Report Date | 04 February 2013 |
| Manager | K2 Asset Management |
| Fund Name | K2 Select International Absolute Return Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | January 2013 |
| Latest Return | 2.74% |
| Latest 6 Months | 13.66% |
| Latest 12 Months | 16.95% |
| Latest 24 Months | 5.83% |
| Annualised Since Inception | 10.33% |
| Inception Date | 01 January 2005 |
| FUM (millions) | AU$223.3 |
| Fund Overview | K2 Select International Absolute Return Fund invests in global equities on a long/short, opportunistic trading basis. The K2 Select International fund is an AUD-denominated unit trust., Its strategy combines macro asset allocation with multi-variable stock selection. Internal and external research is extensive. K2 limits single-security exposure to 10% of the fund's NAV on a cost basis., Gearing is employed at a maximum of two times, mainly used to reduce net long exposure. The fund has a long bias, targeting 50% to 60% net long over an investment cycle. Cash positions have exceeded 50% and been as low as 5%. 50 to 70 positions are typically held., The management employs several stop-loss measures, including a stop-loss policy of 10% on shorts. |
| Manager Comments | The K2 Select International Absolute Return Fund delivered 2.74% during January and 16.95% over the last 12 months - in line with the MSCI AC World Index A$.
The fund maintained a net equity exposure of 95 - 100% for January benefiting fully from strong global markets. On a regional basis the fund did best from the US, Australia and Europe.
At a stock level some of the fund's previous strong performers took a breather, notable was Samsung suffering from the strong Korean Won. On the positive side, stock winners came from cheap US gas plays and pipeline stocks.
Looking ahead the fund has a positive view on equities as risk appetite and economic growth improve, driven by loose monetary policy. In addition, equity valuations are low versus cash and bonds and therefore have space to run. |
| More Information | » View detailed profile of this fund |
