| 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. *Formerly the Optimal Australia Absolute Trust |
| Manager Comments | The portfolio's long positions dominated December's performance result. The Fund's resources exposure drove solid returns, with contributions from BHP, LYC, ORE and TAW. WFD and TLS also contributed positively. AHG and QUB were modest negative performers in the long portfolio, however, ARCO retain their conviction in these stocks with a positive outlook. The Fund's short portfolio contributed negatively overall, with select insurance and industrial shorts being the principal detractors. ARCO noted that they retain their cautious view of the local banking sector which they expect to continue to struggle in 2018 with low earning growth, adverse credit quality, restructuring and political risks representing headwinds blowing strongly in the face of still attractive dividend yields. |
| More Information |
