The Bennelong long/short (market neutral) equity fund has returned 2.24% for July to take their 2009 YTD return to +9.52% and their annualised return since inception in February 2002 to 20.61%. Bennelong noted that the local market had recorded its strongest one month gain since December 1993 as investors gained confidence from better than expected economic data, second quarter company results in the US, and stronger commodity prices. However the manager also noted evidence that investors are possibly re-evaluating the pace and extent of some of these moves. Looking forward the manager note that the S&P200 has rallied 37% from the low in March, while forward earnings (according to Goldman Sachs JB Were) have been downgraded approximately 5%, leading to a 42% expansion in the Index's R/E ratio. As such they feel that further expansion is unlikely and will be dependent on earnings recovery in FY 2011 and beyond. View the detailed profile for Bennelong's Long Short Equity Fund.
