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| 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. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors. |
| Manager Comments | In December, the Fund made several stocks and weightings changes in line with the investment team's assessment of risk and reward. However, on the whole, the Fund maintained its core stocks/strategies as the team continues to see them delivering positive performance in the future. The top 3 spreads for the month came from the following pairs; Long Oil Search/Short Santos, Long Qantas/Short Flight Centre and Long CSL/Short Sonic Health. The bottom 3 spreads came from long Ramsay Health/Short Primary Healthscope, Long Star Entertainment/Short Metcash/Woolworths and Long Resmed/Short Ansell. |
| More Information |
