| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months (pa) | |
| 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 | Bennelong noted elevated volatility and regular sharp mood swings continue to create an environment that is very difficult to navigate. They emphasise that they operate on the basis that fundamentals rule the long-term, while liquidity swings the short-term. Equal top pairs for the month were long TPG / short Telstra and the three-legged pair long JBH / short SUL and MYR. Performance was driven by a very strong share price performance by TPG on consummation of the merger with Vodafone. Bennelong retain a very positive outlook for the new TPG. Long JHX / short CSR was the portfolio's third best pair as JHX upgraded earnings during the month. The Fund had no material negative pairs. |
| More Information |
