NEWS
20 Jan 2021 - Performance Report: Atlantic Pacific Australian Equity Fund
| 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 | The primary objective of the Atlantic Pacific Australian Equity Fund is to generate a mixture of capital and income returns for investors with a high risk profile, over a 5 to 7 year investment period. The Investment Manager believes that markets are fundamentally inefficient and that active investment management will result in higher than 'benchmark' returns. The Fund has adopted the S&P/ASX200 Accumulation Index as the benchmark for its performance. The Investment Manager also believes that, on review of many markets globally, no individual style or method of investing will always ensure outperformance in terms of return on investment. In light of this, the Investment Manager may adopt a 'value', 'growth' or 'momentum' style bias, for example, depending on where the market is in its investment cycle. Further, the Investment Manager believes that actual and forecasted events underpin absolute and relative price movements of securities. The Investment Manager will utilise a number of frameworks to assist in positioning the Fund's portfolio of investments. These include fundamental research, quantitative analysis, and macro and catalyst research. |
| Manager Comments | The Fund's capacity to significantly outperform in falling and volatile markets is highlighted by the following statistics (since inception): Sortino ratio of 1.59 vs the Index's 0.62, maximum drawdown of -7.10% vs the Index's -26.75%, and down-capture ratio of 21.15%. Positive contributors during December included City Chic Collective (long), Fortescue Metals (long), Iluka (long) and Terracom (long). Key detractors included Electro Optic Systems (long) and Mesoblast (long). With the start of a global inoculation phase, APSEC are of the view that economies will reflate faster than expected. They have started positioning the portfolio into relative value, commodities and long yield beneficiaries, keeping in mind that markets could revert. Cost push inflation is what they are looking out for, and they expect this will set the stage for higher bond yields if they accelerate. |
| More Information |
20 Jan 2021 - Webinar| Laureola Review: Q4 2020
 |
|
Wed, Jan 27, 2021 6:00 PM - 7:00 PM AEDT Please join us for our quarterly webinar where we will discuss the following: 1. Introduction: Laureola Advisors 2. Q4 2020 performance review 3. Analysis of current portfolio and where we are now 4. Upcoming developments across 2021 and what we're projecting for the future 5. Q&A
ABOUT LAUREOLA ADVISORS Laureola Advisors was founded with the belief that investors deserve access to the unique benefits of Life Settlements, with the advantages of a specialist and focused asset manager. The best feature of the asset class is the genuine non-correlation with stocks, bonds, real estate, or hedge funds. Life Settlement investors will make money when others can't. Like many asset classes, Life Settlements provides experienced and competent boutique managers like Laureola with significant advantages over larger institutional players. In Life Settlements, the boutique manager can identify and close more opportunities in a cost effective manner, can move quickly when necessary, and can instantly adapt when opportunities dry up in one segment but appear in another. Larger investors are restricted not only by their size and natural inertia, but by self-imposed rules and criteria, which are typically designed by committees. The Laureola Advisors team has transacted over $1 billion (US dollars) in face value of life insurance policies. |
19 Jan 2021 - Performance Report: Prime Value Emerging Opportunities Fund
| 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 | The Fund is comprised of a concentrated portfolio of securities outside the ASX100. The fund may invest up to 10% in global equities but for this portion typically only invests in New Zealand. Investments are primarily made in ASX listed and other exchange listed Australian securities, however, it may also invest up to 10% in unlisted Australian securities. The Fund is designed for investors seeking medium to long term capital growth who are prepared to accept fluctuations in short term returns. The suggested minimum investment time frame is 3 years. |
| Manager Comments | Key positive contributors in December included City Chic, Pinnacle Investment and Mainfreight. Key detractors were Helloworld Travel, United Malt Group and Austal. Prime Value noted the Fund's return over CY20 were broad-based with downside protection. 18 stocks contributed more than +1% to returns while no stocks detracted more than -1%. Prime Value remain positive on the outlook for 2021 while highlighting the challenge of forecasting the direction of markets in the short term. At the stock level they are still seeing many attractive investment opportunities and expect the coming year will provide more. To uncover these opportunities they continue to undertake an active company meeting program, averaging more than 2 meetings per day. |
| More Information |
18 Jan 2021 - Hedge Clippings | 15 January 2021
|
||||
|
If you'd like to receive Hedge Clippings direct to your inbox each Friday
|
18 Jan 2021 - Performance Report: L1 Capital Long Short Fund
| 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 | L1 Capital uses a combination of discretionary and quantitative methods to identify securities with the potential to provide attractive risk-adjusted returns. The discretionary element of the investment process entails regular meetings with company management and other stakeholders as well as frequent reading and analysis of annual reports and other relevant publications and communications. The quantitative element of the investment process makes use of bottom-up research to maintain financial models such as the Discounted Cashflow model (DCF) which is used as a means of assessing the intrinsic value of a given security. Stocks with the best combination of qualitative factors and valuation upside are used as the basis for portfolio construction. The process is iterative and as business trends, industry structure, management quality or valuation changes, stock weights are adjusted accordingly. |
| Manager Comments | L1 Capital noted the Fund's robust returns in 2020 were driven by strong stock picking across a wide range of sectors. Returns were further supported by decisive buying during the crisis in March and positioning the portfolio for vaccine success in November. They believe the vaccine rollout will trigger a rotation into value and cyclical stocks (which lagged the market in 2020) and they expect this to be a major positive tailwind for performance heading into 2021. Key contributors to performance in December included Imdex Limited (long, +26%), Lyft (long, +23%), Teck Resources (long, +10%), Liberty Financial Group (long, +30%), Metcash (long, +17%), and Cenovus Energy (long, +16%). The portfolio ended the month most heavily weighted towards Australia/NZ, followed by Europe, North America and Asia. |
| More Information |
15 Jan 2021 - Performance Report: Bennelong Kardinia Absolute Return Fund
| 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 | The Fund's discretionary investment strategy commences with a macro view of the economy and direction to establish the portfolio's desired market exposure. Following this detailed sector and company research is gathered from knowledge of the individual stocks in the Fund's universe, with widespread use of broker research. Company visits, presentations and discussions with management at CEO and CFO level are used wherever possible to assess management quality across a range of criteria. Detailed analysis of company valuations using financial statements and forecasts, particularly focusing on free cash flow, is conducted. Technical analysis is used to validate the Manager's fundamental research and valuations and to manage market timing. A significant portion of the Fund's overall performance can be attributed to the attention and importance given to the macro economic outlook and the ability and willingness to adjust the Fund's market risk. |
| Manager Comments | Since inception in May 2006, the Fund has returned +8.77% p.a. with an annualised volatility of 7.66%. By contrast, the Index has returned +5.99% p.a. with an annualised volatility of 14.48% over the same period. The Fund's capacity to perform well in falling and volatile markets is highlighted by its Sortino ratio (since inception) of 1.22 vs the Index's 0.25 and down-capture ratio (since inception) of 48.7%. Key contributors for the month included Fenix Resources, Fortescue Metals, Harvest Technology, MACA and Xero. Detractors included Worley, Flight Centre, Ardent Leisure, Qantas and the Fund's short book. Kardinia highlighted in their latest report that a key contributor to the equity market's performance in CY20 has been global central bank monetary policy, including interest rate cuts and quantitative easing by the RBA. They expect this policy support to continue in CY21. |
| More Information |
14 Jan 2021 - Performance Report: Paragon Australian Long Short Fund
| 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 | Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks. Conviction in bottom up analysis drives the investment case and ultimate position sizing: * Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case. * Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework. The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market. |
| Manager Comments | Positive contributors for December came from battery minerals (Pilbara), base metals (EM2) and precious metals (WAF & Investigator) holdings. Paragon noted supportive drivers for precious metals remain, with US real rates resuming a downtrend of -1.08%, coupled with US$ breaking 2-yr lows of 89.5c, pushing cycle lows. Gains in gold, silver, copper and Brent Oil collectively represent great tailwinds for the portfolio going into 2021. Paragon believe unprecedented US Fed monetary stimulus and US fiscal stimulus has markets well placed to continue their secular bull run into 2021. As at the end of December, the portfolio was most heavily weighted towards Electric Vehicles, Technology, Base Metals and Gold. |
| More Information |
13 Jan 2021 - Webinar | Paragon Australian Long Short Fund Performance Update & Outlook
|
In this webinar, John Deniz provides an update of the Fund's performance for 2020 along with Paragon's current market outlook and the Fund's positioning. |
13 Jan 2021 - Performance Report: Bennelong Long Short Equity Fund
| 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 returned -3.08% in December as the Australian equity market experienced a rally in cyclicals and laggards. The outperformance of the Fund's long portfolio by some of the cyclicals and laggards in the short portfolio contributed to the Fund's weaker finish for the year. Top pairs for the month included long Xero / short TechnologyOne, and long Mineral Resources / short BHP. Bottom pairs included long BlueScope Steel / short Sims (SGM), and long Woolworths / short Metcash/Treasury Wine. |
| More Information |
