The PM Capital Absolute Performance Fund was up +9.4% in March, while the Australian Opportunities Fund gained an impressive +14.9%. Unlike many other funds in the current climate of economic uncertainty, both funds were fully invested for the month, which boosted performance.
Strong rallies in global equity markets, specifically financial and media stocks, pushed both funds to strong performances. The Absolute Performance Fund (ARF) lost ground in currency markets, as the US dollar was sold off due to the recent financial stimulus measures adopted in the US. March also saw the adding of resources positions to the ARF's portfolio for the first time in nearly two years, triggered by recent stock price falls. For the Australian Opportunities Fund Macquarie Group, PMP and Harvey Norman were key positive contributors, offset by negative returns in Austar and Fosters.
PM Capital's other fund in the AFM database, the Enhanced Yield Fund, posted a more modest gain of +1.0% in March.
