The Platypus Australian Equity Fund, an equity long only fund, declined by -7.3% in January. This result comes after the Fund lost -44.93% over 2008.
The manager attributed January's poor result (which underperformed the ASX/S&P300 Accumulation Index by -2.46%) to negative returns on David Jones and Leighton Holdings. Both companies revised their profit guidance down by approximately 5% during the month, resulting in significant falls in price. No stock in the Fund's portfolio made a material positive contribution to overall performance. Poor market liquidity hindered the manager's attempts to reduce exposure to retail stocks, however they were encouraged by the significant decrease in market volatility, and signs that recent fiscal and monetary measures to stimulate the Australian economy are having a positive impact.
