BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
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The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with a twelve year track record and annualised net returns of 18.26% pa.
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Since inception in January 2003 the Fund has had positive annual returns each year, including an 11.95% return in 2008 and 20.6% in 2011, both of which were negative years for the ASX200.
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The Fund's risk statistics are also sound with maximum drawdown of 12.22% and 68% positive months. Both the Sharpe Ratio at 1.09 and the Sortino ratio at 1.84, indicate a high reward-to-risk ratio.
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The consistent returns across the investment history indicates the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market.
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Fund performance was muted for the month as the market drifted without any strong thematic and investors were subject to merger and
acquisition activity/speculation, yield/defensive buying and stock specific issues. Our assessment is that the April factors that
negatively impacted fund returns, which were of a more global nature, were persisting early in the period but since have abated. Fund activity
was limited in May as our view of market fundamentals have not really changed.
Sean Webster
Research and Database Manager
Australian Fund Monitors
Bennelong Long Short Equity Fund AFM Review - May 2014