| 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 Fund's long portfolio contributed positively to performance and continues to drive 75%+ of the Fund's return over time, while the Fund's short positions impacted negatively. Strong performers in the long portfolio include Orocobre, CYBG, JHG, CTX and STO while the Fund's long exposure to insurance (SUN), transport (QUB) and retail (WOW) sectors detracted from performance. Shorts in the resource and REIT's sectors contributed negatively along with ARCO's index futures shorts used to hedge against broader market risk. ARCO seek to build modest positions in CBA and Telstra to take advantage of opportunities they feel were created during reporting season. ARCO remain sceptical about the major banks and healthcare stocks, cautious about the major resource companies and REITs and selectively interested in the consumer discretionary and telecommunications stocks. ARCO also remain vigilant of macro drivers, with particular focus on escalating geopolitical tensions and the US economy. As such, the Fund is positioned defensively with a net -2.4% market exposure at the end of August. |
| More Information |
