Arnott made the most of their gains in June from short term trading, with share class arbitrage and volatility components of the fund flat for the month. Regionally Japan was the strongest contributor with 70% of profits, followed by Australia with Hong Kong/China slightly detracting from performance.
1 year return: +0.97%. Annual (Nov.2005): +9.25%
Looking ahead the manager expects profits to continue to come from trading and shorter term fundamental ideas in the second half, particularly from Japan and Asia, and notes it has hired four traders in the last nine months with the aim of capturing opportunities across the region.
Arnott's Long/Short Opportunities Fund was established in November 2005 and has maintained positive annual returns every year since then, including in 2008. The fund's investment universe is primarily pan Asian and employs a three stage process: fundamental research; event screens and finally a derivative based trading methodology incorporating risk/reward analysis for position entry and exit. The firm's total FUM was US$479 as of the end of June.
