| 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 | 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 as a Listed Investment Company (LIC) on the ASX. |
| Manager Comments | The long portfolio performed slightly better than the market with a return close to zero, while the short portfolio was the drag on returns underperforming the market slightly. The portfolio experienced a favourable hit rate of company results in February reporting season across both the long and short portfolio, which was not reflected in the return. Return from the Fund's most profitable pair, long Aristocrate / short Tabcorp, was due to a weak result from Tabcorp. The Fund's weakest pair was long Carsales / short Computershare with both stocks down; Carsales due to profit taking after a strong run and Computershare due to a stronger result and associated earnings upgrades. |
| More Information |
