With just over 20% of single manager results to hand, early indicators are that performance from Australian absolute return funds in March was positive, although as might be expected, well below the stellar performance of the ASX200 and the S&P500 in the US.
Equity based funds reporting to date returned 2.61%, with non equity funds returning 0.86%.
Equity markets showed extreme volatility, as can be seen from the SPI futures contract which started the month by falling 8% only to promptly rally by 24% from the lows to close the month with a gain of 10%. Much of the rally was focused on just 8 stocks, with the big four banks, Macquarie and Wesfarmers, along with BHP and RIO, accounting for over 80% of the gains made in the ASX200.
Not surprisingly some equity based managers who have suffered in the bear market of 2008 produced excellent returns, with PM Capital’s Opportunities fund leading the pack with a return of 14.9% for the month, and Pengana’s Australian Equities long/short bringing home 7.60%. St Helen’s Arran fund returned 6.55%, bringing YTD to 9.44%, and 12 month performance to +3.35%.
