Only Performance is Reality
As you might have noticed Hedge Clippings has been off the air (no comments please) for a few weeks. In a case of either poor timing (or bad management) Clippings has been in the UK, leaving for home just as the RWC was getting under way, and missing the Wallabies' winning performance against England. One swallow doth not a summer make, but there was an improved air of confidence notable both on and off the field.
Which leads of course to the change of PM which also took place in my absence. Having been both vocal and critical over the past few years regarding the performance of a succession of Prime Ministers and their Treasurers of various persuasions, I can only say "welcome" and let's move ahead. Although only three or four weeks has passed since Malcolm Turnbull became PM there seems to a new mood, and once again an improved air of confidence amongst both business and consumers.
Tony Abbott may not be happy, but only performance is reality. Of course the biggest potential loser is probably Bill Shorten.
Enough of politics! Talking of performance and reality, economies globally have taken a beating as China's inevitable slowdown has taken its toll on markets. The extreme volatility has seen the ASX200 Accumulation Index fall almost 13% from its February high to the end of September, with the September quarter falling 6.6%, although month to date half of that loss has been recovered.
In that volatile environment absolute return and hedge funds have once again proven themselves to be risk averse as opposed to risky. YTD the average equity fund is up 7.31%, an outperformance of 10% vs the market, and over 12 months they're up 9.68%, again 10% better than the ASX200 Accumulation Index. Over 12 months 81% of the funds in AFM's database have outperformed the index, and YTD that number rises to almost 92%.
Of course these are averages, with the best doing considerably better than that. Over 12 months: Totus Capital, up over 30%; Bennelong Long Short, up 27%; QATO, up 24%, to name just a few.
In spite of this there remains a small section of the media, probably prompted either by lack of hard facts, and passive index funds, driven by vested interests that continue to sing the "risky and expensive" tune, although in times like these as above, Only Performance is Reality.
Specific results received this week include the following PERFORMANCE UPDATES:
Jamieson Coote Bond Active Fund rose 0.52%, in comparision the Bloomberg Australian Government Bond Index's returned 0.41%.
FUND REVIEWS released this week: Totus Alpha Fund; Supervised High Yield Fund; Meme Australian Share Fund; APN Asian REIT Fund; QATO Capital Market Neutral Long/Short Fund;
And now (and about time) for something completely different: Malcolm Turnbull!
And on that note I wish you an enjoyable week-end. It's good to be back, and Go! The Wallabies against Wales at Twickenham!
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
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