| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. |
| Manager Comments | Overall our long book contribution to return was outweighed by a negative contribution from our short book. The fund experienced a strong contribution from healthcare but this was overshadowed by a larger negative contribution from financials. Other sector exposure returns largely balanced each other. Within financials, the trend to increase payout ratios and dividends with reported results was a major negative factor in two of our short positions (Suncorp +8.0% and AMP +7.1%) which re-rated substantially more than their respective paired longs (QBE +4.7% and Henderson -9.2%). Fund activity was limited for the month; we participated in two placements in existing long positions and adjusted weightings in some pairs but did not add new positions or close any existing holdings. |
| More Information | » View detailed profile of this fund |
