| Report Date | 12 April 2010 |
| Manager | K2 Asset Management |
| Fund Name | K2 Select International Absolute Return Fund |
| Strategy | Equity Long/Short |
| Latest Return Date | March 2010 |
| Latest Return | 4.70% |
| Latest 6 Months | 3.26% |
| Latest 12 Months | 34.31% |
| Latest 24 Months | 14.01% |
| Annualised Since Inception | 13.27% |
| Inception Date | 01 January 2005 |
| FUM (millions) | AU$185 |
| Fund Overview | K2 Select International Absolute Return Fund invests in global equities on a long/short, opportunistic trading basis. The K2 Select International fund is an AUD-denominated unit trust. Its strategy combines macro asset allocation with multi-variable stock selection. Internal and external research is extensive. K2 limits single-security exposure to 10% of the fund's NAV on a cost basis. Gearing is employed at a maximum of two times, mainly used to reduce net long exposure. The fund has a long bias, targeting 50% to 60% net long over an investment cycle. Cash positions have exceeded 50% and been as low as 5%. 50 to 70 positions are typically held. The management employs several stop-loss measures, including a stop-loss policy of 10% on shorts. |
| Manager Comments | Net equity exposure for K2's Select International Fund was between 80% and 100% throughout March, generating a positive result of 4.7%. The manager expects to maintain net equity exposure above their neutral position of 65% over coming months, taking the approach of picking stocks where they see ample equity investment opportunities rather than trying to predict the source of the next financial crisis.
The fund is currently hedging 72% of its exposures back to AUD as the manager sees positives and negatives for the local currency versus other currencies as being fairly balanced at this point. |
| More Information | » View detailed profile of this fund |
