Pengana Capital's Emerging Companies Fund, which invests in small Australian listed companies, reported a loss of -1.9% in January while its benchmark (the S&P/ASX Small Industrials Accumulation Index) was down -5.3%.
The manager noted that market conditions remained volatile and economic conditions uncertain in January, although there were some positive signs in global credit markets. As a result the Fund remained defensively positioned during the month, though gains were recorded in positions in Duet Group (+23%) and Webjet (+10%) among others. Much uncertainty remains in general economic and earnings outlooks, so the Fund will remain cautious in the short term.
