16 Jul 2018 - Performance Report: KIS Asia Long Short Fund

The KIS Asia Long Short Fund returned -1.06% in June. Since inception in October 2009, the Fund has returned +13.19% p.a. with an annualised volatility of 5.21%. By contrast, the ASX200 Accumulation Index has returned +7.71% p.a. over the same period with an annualised volatility of 11.58%. The Fund's Sharpe and Sortino ratios, 1.90 and 4.29 respectively, are significantly superior to the Index's Sharpe ratio of 0.46 and Sortino ratio of 0.59. The Fund's up-capture and down-capture ratios since inception indicate that, on a cumulative basis, the Fund has achieved positive performance in rising markets and significantly outperformed in falling markets.

The Fund's biggest loss in June was on its short position in Woolworths (+7%) which cost 32bp. Click here to read KIS Capital's recent insight piece on their view of the threat to Woolworths' core business earnings from an increase in wage costs. The Fund did not have any other loss or contribution of more than 30bp on any single name.

On most of the Fund's small cap holdings there was no significant news, KIS believe the declines were driven by investors looking to realise capital losses before the end of the tax year. KIS expect this anomaly to reverse over the coming weeks or months. KIS noted that so far this year the Fund's returns have been driven very heavily by the short side of the portfolio.