Kapstream’s Absolute Return Income Fund achieved a small gain of 0.46% in December bringing the year-to-date cumulative performance to positive 7.37%.
Kapstream employs a fixed income strategy and aims to generate absolute returns over multiple business cycles by incorporating high quality/high conviction trades while taking into account the global macroeconomic view and variables such as duration, yield curve and volatility which support the research and analysis.
The manager's outlook for 2009 says that regardless of whether Australia follows the US into recession it will certainly feel like one, however opportunities will arise for investors on the lookout for high quality short dated credit which should generate solid returns in an uncertain environment.
