PENGANA ABSOLUTE RETURN ASIA PACIFIC FUND
Attached is our most recently updated Fund Review on the Pengana Absolute Return Asia Pacific Fund.
The Pengana Absolute Return Asia Pacific Fund ("PARAP") was established in 2008 by portfolio managers Antonio Meroni and Vikas Kumra. The Fund is a feeder fund into a Cayman Islands AUD share class fund.
The Fund invests both long and short in Asia Pacific equities, including in Australian and New Zealand, after a stock specific "event" has either occurred or been announced and the portfolio aims to be uncorrelated to the underlying equity markets. A combination of the Manager's experience, thorough research and continuous back- testing identify the most attractive of these events.
Risk controls include limits on individual positions as well as gross and net exposure. Limits are in place for option exposure and cash borrowing, with stop loss limits on individual positions. Overall the manager is looking to derive returns from the event strategies as opposed to any currency or market exposures.
The Fund returned +3.87% for the month, compared to the HFR Event Driven Index which closed +0.5%. The month saw significant volatility in China/ Hong Kong (H Shares) after CSRC allowed Chinese mutual funds to access Hong Kong markets which significantly impacted holding company discounts and A/H share spreads. Performance was diversified across our M&A, Capital Management and Stubs sub strategy. The Fund used this opportunity to reduce our gross exposure and overall net to 210% and 15.7% respectively.
For further details on the Fund, please do not hesitate to contact us.
Attached Files:
Pengana Absolute Return Asia Pacific Fund AFM Fund Review April 2015