| 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 | The Fund's return was flat in January (-0.25%). Bennelong noted retail participants in the US market sparked several dramatic rallies in heavily shorted stocks. The Fund's short portfolio delivered a zero contribution for the month. Seven of the Fund's top ten positive contributors were shorts, and four of the ten largest negative contributors were shorts. Bennelong highlighted that they tend to avoid more heavily shorted stocks. There were a number of updates ahead of reporting season. Some notable ones in the long portfolio included large upgrades from BlueScope and JB Hi-Fi, and strong FUM flow data for Netwealth. Bennelong's view is that recent strength of equity markets reconciles with highly positive liquidity conditions but contrasts with a weak and uncertain economic and corporate earnings backdrop. |
| More Information |
