| 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 | 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 | The valuation gap between (loosely generalised) financial repression/low interest rate winners and cyclical losers has continued to blow out. Any stock with 'defensive yield' characteristics continues to be re-rated to valuations that are indefensible on any non-yield metric; yet no price is low enough for materials and cyclicals in view of earnings risk. Our longs, which include a small exposure to the latter category, lost 0.60% in NAV terms. Our shorts, which do feature 'indefensible valuation yield' as a common factor weight, were roiled by a further collapse in bond yields, losing 0.68%/NAV. Our index futures position compounded hedge costs. The big macro events of January and early February seemed similarly supportive of further yield-seeking investment strategies. Both the ECB quantitative easing program and locally the RBA cut 0.25% in cash rate down to record low 2.25% had intended effect of driving yields down further. So we watch and wait for further opportunities on this thematic, having tightened our risk management disciplines around this trade. |
| More Information | » View detailed profile of this fund |
