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| Fund Overview | The core investment strategy of the Fund consists of the active selection of a series of paired long/short investments in Australian listed equities based upon the Investment Manager's fundamental research. The strategy seeks to capture stock Alpha whilst limiting portfolio exposure to market risk by adopting a dollar neutral portfolio market exposure position with the tactical capability to take net exposure of up to +/- 20% of gross assets. Stock selection is based on fundamental analysis to derive a view of a pair of individual stocks. The Investment Manager is style neutral in determining the stock's positioning. This primary 'pairs' strategy may be enhanced by other complementary strategies, including event driven, security and takeover arbitrage, thematic and momentum trading. The paired stock positions comprise long and short correlated securities that are in most cases simultaneously opened. A portfolio of approximately 30-100 stocks will be selected and actively managed in 15-50 pairs to comprise the core minimum (60%) of the Gross Asset Value. Up to a maximum of 40% of the portfolio's Gross Asset Value may be invested in uncorrelated securities and/or uncovered (long and/or short) positions. These 'satellite' positions are intended to enhance returns and to balance overall portfolio risk. In this regard, the Investment Manager recognises that it is not always possible to achieve a suitable paired proļ¬le within the S&P/ASX 200, and that a high conviction long or short stock idea might not always have a suitable pair. |
| Manager Comments | At month-end the Fund was 50.9% long and 49.1% short with month-end leverage of 2.6 times. The fund produced a slightly positive return for the month with the short portfolio generating a positive return in a weak equity market, just compensating for the negative contribution from our long portfolio. At a sector level, Industrials (primarily the Long Austal / Short Spotless pair) and Media made the largest positive contribution. The fund experienced both a positive and a negative impact from the weak consumer environment but overall Retail and Travel made the largest negative sector contributions. Three of our consumer exposed long positions and one our shorts had downgrades to their profit outlook during the month. |
| More Information | » View detailed profile of this fund |
