Regal’s Amazon Market Neutral fund has made a welcome return to positive territory following a tough six months in the second half of 2008. The manager has reported a positive 4.89% for January 2009, with their short book proving the benefit of hedging by contributing 6%, whilst their long positions lost 1%. Against this, the ASX was down almost 5% for the month.
Regal’s MD, Andrew King noted that they expect ongoing opportunities on the short side as profit warnings in the reporting season and capital raisings accelerate.
Regal’s Amazon recorded a one year rolling return of -4.78% and a 2008 return of -8.25%, with the majority of the negative performance coming in the second half after a strong first six months when they returned over 15%. Annualised returns since inception in September 2005 are 21.32%. Funds under management in the Cayman based offshore fund was US$43m.
