June proved to be a very difficult month for Bennelong's Australian long/short equity fund due mainly to their defensive positioning which is premised on a cautious macro view. In addition, the manager experienced a large draw down on two of their positions in the volatile materials sector. The manager noted concerns that some of the main current drivers of domestic demand (the wealth effect associated with firm residential property values and raw material exports to China as it builds stockpiles) are not sustainable and have been overplayed by the market.
1 year return: +4.94%. Annual (Feb.2002): +20.30%
Bennelong was established in February 2002 and has a compound annual return since inception of 20.30%, including a positive return of 11.95% in 2008. The manager has recently seen a return of capital inflows, following Fund of Fund liquidity based redemptions in 2008, and FUM currently stands at A$60m.
