Austral Capital has reported marginally positive returns for September, continuing their very defensive strategy and allocating aroung 95% of the portfolio to cash citing capital protection as paramount. Austral Capital further stated it is continually monitoring counterparty risk and is satisfied with all assets held by or on behalf of its prime broker UBS.
The Austral Equity Fund achieved 0.24% for the month with approximately A$14m FUM. In the Austral Opportunity Fund, which uses a similar investment strategy and has approximately A$32m FUM, A$ shares returned a positive 0.32% while US$ shares recorded a negative 0.24%, due to the devaluation in the Aussie dollar. The September results bring the YTD cumulative returns to -0.32% and -0.22% for the Equity and Opportunities Funds, respectively.
Austral Capital is an event driven hedge fund manager and invests primarily in the securities of Australian companies that are, or may be, involved in special situations or corporate events such as equity and hybrid security issues, block trades, mergers and takeovers, de-mergers, reconstructions, recapitalisations and spin-offs.
