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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 | Since inception in September 2008 the Fund has delivered a return of 10.18% (Index 5.81%) with a volatility of 3.51% as compared to 14.85%. Over the same time frame the Fund has recorded 84% positive months and a Sharpe Ratio of 1.74. The Monthly Report comments on the Fund's performance 'In broad terms, the positive returns on our long positions in April more than offset the cost of hedging our overall portfolio risk, and no one theme or sector dominated our long portfolio. Minimising the cost of portfolio protection - let alone making money on shorts - was again difficult in April, in a market in which financial repression and the TINA doctrine (''there is no alternative') towards equities continue to marginalise traditional approaches to valuation. Yet there are signs that this mind-set is slowly changing, as April saw a further sell-off in highly-valued 'momentum' stocks and, late in the month, in the big banks and mining heavyweights.' In terms of Fund strategy the Manager comments 'Risk protection remains a very necessary discipline, in our view, with the market at an elevated valuation, and with price gains in most stocks having been driven overwhelmingly by multiple expansion rather than by earnings growth. In the absence of any great conviction that the market can make a strong advance in the short term, we continue to maintain low net exposure, and exited the month slightly net short equity risk.' |
| More Information | » View detailed profile of this fund |
