| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months (pa) | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors as a Listed Investment Company (LIC) on the ASX. |
| Manager Comments | A large number of the Fund's long holdings reported very strong financial results in August which Bennelong noted they are very pleased with given the economic conditions. The Fund also benefited from a number of short positions having very poor results. The Fund did not experience any material adverse results in either the long or short portfolio. Given the Fund's increased level of volatility recently, Bennelong are running the fund leverage lower than usual. Top pairs included long Crown (CWN) & Pointsbet (PBH) / short SkyCity (SKC), long Xero (XRO) / short Technology One (TNE) and long Mineral Resources (MIN) / short BHP (BHP). The worst performing pairs included long A2 Milk (A2M) / short Coca-Cola Amatil (CCL), long ResMed (RMD) / short Ansell (ANN) and long Orica (ORI) / short Incitec Pivot (IPL). |
| More Information |
