| 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 will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | The M&A and Direction Alpha strategies contributed positively for the month, returning +0.4% and +0.32% respectively, while the Relative Value book detracted -0.43%. In the M&A book, positive contributors included the Fund's position in Hong Kong listed TCC International Holdings (+0.20%) and Siliconware Precision Industries in Taiwan. The Fund also added Changyou.com Limited in the month. In Australia, the Fund's position in Pepper Group completed successfully, as the scheme implementation agreement by private equity buyer KKR was voted through. Key successes in the Directional Alpha book were Shangri-La Asia (+13.4%), Shinsegae (+14.8%) and the spin-off in Wharf Real Estate Investment (+10%), whilst detractors included China Travel (-12.5%) and Samsung Electronics (-7.8%). Most of the negative contribution from the Relative Value book came from the Fund's long/short position long SINA Corp/short Weibo Corp, however, Pengana continue to hold this position. In Japan, the Fund has entered into a long position in Kansai Pain / short Nippon Paint which contributed positively. The Fund's position in long Mitsui OSK / short Kawasaki Kisen was unwound with a positive contribution of 14 basis points. |
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