Regal Funds Management's Amazon Market Neutral Fund recorded a fall of 7.63 per cent in July, however healthy returns over the last few months still leave a positive return of 6.22 per cent for the year so far. By comparison the ASX200 lost 4.6 per cent in July and is down 10.3 per cent over the last six months.
Most disappointing for the manager was mis-timing adjustments to the portfolio, including cutting short positions in ANZ and NAB only days before they both announced significant increases in their bad debt provisions which saw both stocks lose around 20 per cent.
Amazon, a Cayman based Market Neutral fund open to wholesale investors only, returned +32% in 2007, and 42% in 2006 for an annualised return post all fees of 34.43% since inception in September 2005. Investing mainly in Australia, with some opportunistic positions mainly in Europe, Amazon does not invest in emerging markets.
Regal Funds Management was established by Andrew King in January 2004 following experience with local boutique manager Paradice Investment Management.
