The Platypus Australian Long/Short Fund lost -6.18% in May, driven by losses on short positions in the materials sector.
1 yr return: -18.98%. Annual (Oct 2005): +2.4%
The Fund, which is managed by Platypus Capital Management, was hurt by the ongoing rally of base metal prices since the start of 2009, which was reflected in the share prices of materials companies (the sector gained +6.58% in May). The Fund has been short in this sector for some months, which provided positive returns in late 2008 and early 2009, however more recently this strategy has been dragging down performance. Although short positions are being reduced, this is being undertaken gradually therefore most of the losses have stemmed from long standing positions.
