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| 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 | M&A, Directional and Relative Value strategies all contributed positively for the month. The largest contributor in the M&A sub-strategy was Alpine Electric which rose +5.7%, contributing 42bps to overall performance. In the Relative Value book, the largest positive contributor was the Fund's long/short position +SINA/-Weibo Corp. contributing +16bps. The Directional Alpha book contributed +0.7% to performance, key successes in January included Tsingtao (+13.7%), China Conch Venture (+19.8%), SIIC Environment (+4.9%), whilst key detractors included Bharti Airtel (-3.0%). The Fund's M&A gross exposure increased to 73% from 57% on the back of strong M&A deal activity and the Fund's Relative Value exposure increased to 90% from 75%. On the back of strong equity moves, Pengana have reduced the Fund's Directional Alpha book to 14.7% from 19.9%. The Fund's net and gross exposures averaged +14.7% and 186% respectively during the month. |
| More Information |
