AR Capital Management's Ascot Fund was up +0.96% in February, as the manager targeted stocks whose results would surprise the market during the reporting period.
The strategy proved successful, as the Fund outperformed the market by +6.5% for the month. Positive returns were gained from short positions in Amcor, Brambles, Incitec Pivot, News Corp and Sonic Health, and longs in JB Hi-Fi and Emeco Holdings. Negative returns came from Nufarm, OneSteel and the major banks. The manager maintained a book size of approximately 20% of FUM, citing the ASIC short selling ban, reporting season volatility and risk/return tradeoffs as reasons to remain conservative.
