Naos Asset Management's two absolute return funds were mixed in January, after both funds experienced extremely disappointing returns in 2008.
The Naos Small Companies Fund was up +1.76% for the month, although in the 12 months to January it was down -54.74%. Illiquidity and deleveraging continued to affect small Australian listed companies, although the Fund is continually restructuring its long portfolio to include companies with strong medium term fundamentals and potential.
The Naos Absolute Return Fund was down -1.40% in January, bringing its 12 month return to -22.91%. The Fund maintained its defensive strategy during the month, with high levels of cash and investing 10-25% in long beta stocks. The Fund is looking to invest in companies that are sensitive to lower interest rates and lower Australian dollar, as well as in certain capital raisings.
