Fortitude Capital, which has the extraordinary record of having not produced a negative return for the last 19 months, has returned +0.55% for July to take YTD performance to +4.13% and +12.1% for the past 12 months.
Fortitude is broadly a market neutral fund, achieving this via multiple strategies across ASX listed securities. In July's strong market (the largest percentage gain in the market since December 1993) the manager's long gamma derivative overlay struggled, but this was more than offset by M&A activity as opportunities arose from corporate Australia's recapitalisation process which has now spread to the smaller listed sector.
Since March 2005 the fund has only suffered 3 negative months with the largest drawdown being -0.50% in December 2005, reflecting the manager's major focus on risk management and capital preservation.
Visit Fortitude Capital's Absolute Return Trust fund profile.
