Fund Review: Insync Global Capital Aware Fund September 2019

16 Oct 2019 - Australian Fund Monitors

Latest Fund Review on Insync Global Capital Aware Fund is now available. The Global Capital Aware Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend...

Recession O'Clock, Australia?

15 Oct 2019 - Marcel von Pfyffer, Arminius Capital

The biggest drivers of GDP growth in Australia are "houses and holes", i.e. residential construction and resource exports. Residential construction is driven by factors internal to the Australian economy, whereas resource exports depend on...

Performance Report: Bennelong Kardinia Absolute Return Fund

14 Oct 2019 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund has returned +9.04% p.a. with an annualised volatility of 7.01%. By contrast, the ASX200 Accumulation Index has returned +6.41% p.a. with an annualised volatility of 13.14%.

14 Oct 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	14 October 2019
Manager	Kardinia Capital, a Bennelong boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	September 2019
Latest Return	-0.35%
Latest 6 Months	2.56%
Latest 12 Months	-3.88%
Latest 24 Months (pa)	0.20%
Annualised Since Inception	9.04%
Inception Date	01 May 2006
FUM (millions)	AU$95.58
Fund Overview	The Fund consists of a concentrated long/short portfolio typically comprising 20 to 50 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. On average since inception the Fund's exposure has averaged 40% net long. There is a slight bias to large cap stocks on the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. 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	The Bennelong Kardinia Absolute Return Fund has returned +9.04% p.a. with an annualised volatility of 7.01%. By contrast, the ASX200 Accumulation Index has returned +6.41% p.a. with an annualised volatility of 13.14%. The Fund's Sortino ratio of 1.35 versus the Index's 0.29, average negative return of -1.37% versus the Index's -3.24% and down-capture ratio of 40.60% highlight the Fund's strong focus on protecting investor capital in falling markets over the long-term. The Fund returned -0.35% in September, with the short book dragging on performance. Top contributors included Paradigm Biopharmaceuticals (+25bp contribution), City Chic (+21bp), Westpac (+19bp), Nickel Mines (+17bp) and Independence Group (+17bp). Detractors included Appen (-16bp), Evolution (-15bp), Atlas Arteria (-14bp) and Charter Hall (-14bp). The largest detractor was the individual short book (-44bp), with Bellamy's the subject of a takeover bid and shorts in technology, oil and gold stocks impacting performance. Net equity market exposure was increased from 20.3% to 47.9% (51.5% long and 3.6% short), with the key changes being new positions in Boral, Corporate Travel, Cleanaway and Woodside Petroleum, increased weightings in Macquarie Group, James Hardie and Aristocrat, the closure of the Fund's short position in Share Price Index Futures, partially offset by the sale of Westpac and Telstra.
More Information	Fund Profile Manager's Report AFM Research Reports

Hedge Clippings | 11 October 2019

11 Oct 2019 - Australian Fund Monitors

Diversification - the key to good performance and reducing risk. Given the overall sideways nature of the market (albeit with some day to day volatility) and the dominance of the top 20 or 50 stocks, outperformance is likely to...

11 Oct 2019 - Hedge Clippings | 11 October 2019

By: Australian Fund Monitors

Hedge Clippings | Friday 11 October, 2019

Diversification - the key to good performance and reducing risk.

Given the overall sideways nature of the market (albeit with some day to day volatility) and the dominance of the top 20 or 50 stocks, outperformance is likely to come from stock picking at the smaller end of the market.

While it's early days for September fund performance, with just under 20% of funds having reported to date, at first glance those funds focusing on the small cap end of the market provided their investors with some stellar returns last month. While the ASX200 accumulation index returned 1.84% for the month, a number of funds returned over 4%, with the top 3 to date, Bennelong's Emerging Companies Fund, Cyan's CG3, and Celeste's Australian Small Company's Fund reporting 9.92%, 8.62% and 5.40% respectively.

Obviously one month's performance is not an end unto itself, and a longer-term analysis is required, but with the ASX200 up around 12% over 12 months - assisted by falling interest rates - 15% of the funds in AFM's database are outperforming, and within that group some returning over twice that amount.

Regular followers of Hedge Clippings would know that our preferred approach is to invest in funds by creating a diversified portfolio of funds, thereby reducing risk without necessarily reducing performance. In fact, by selecting funds with a low correlation to each other, performance can actually increase whilst volatility, and risk of capital loss, decreases.

Going forward we will be discussing this - with examples - in more detail. Watch this space.

If you'd like to receive Hedge Clippings direct to your inbox each Friday

JOIN OUR MAILING LIST

Performance Report: DS Capital Growth Fund

11 Oct 2019 - Australian Fund Monitors

The DS Capital Growth Fund rose +2.45% in September, outperforming the ASX200 Accumulation Index by +0.61%. Since inception in December 2012, the Fund has returned +15.28% p.a. versus the Index's +10.69%.

11 Oct 2019 - Performance Report: DS Capital Growth Fund

By: Australian Fund Monitors

Report Date	11 October 2019
Manager	DS Capital
Fund Name	DS Capital Growth Fund
Strategy	Equity Long
Latest Return Date	September 2019
Latest Return	2.45%
Latest 6 Months	13.17%
Latest 12 Months	11.79%
Latest 24 Months (pa)	12.24%
Annualised Since Inception	15.28%
Inception Date	01 January 2013
FUM (millions)	AU$233
Fund Overview	The Fund aims to deliver an average return of at least 10% p.a. through the economic cycle, with a focus on capital preservation. The Fund will comprise a concentrated portfolio of small and mid-cap investments selected through a process of quantitative and qualitative analysis. The investment team looks for industrial businesses that are simple to understand; they generally avoid large caps, pure mining, biotech and start-ups. They also look for: - Access to management; - Businesses with a competitive edge; - Profitable companies with good margins, organic growth prospects, strong market position and a track record of healthy dividend growth; - Sectors with structural advantage and barriers to entry; - 15% p.a. pre-tax compound return on each holding; and - A history of stable and predictable cash flows that DS Capital can understand and value.
Manager Comments	The DS Capital Growth Fund rose +2.45% in September, outperforming the ASX200 Accumulation Index by +0.61%. Since inception in December 2012, the Fund has returned +15.28% p.a. with an annualised volatility of 7.18%. By contrast, the Index has returned +10.69% p.a. with an annualised volatility of 10.95% over the same period. The Fund's Sortino ratio of 3.66 versus the Index's 1.19 and down-capture ratio of 22% highlight the Fund's capacity to protect investor capital in falling markets over the long-term. Over the quarter the Fund rose +3.75% versus the Index's +2.37%. DS Capital noted the main influence on stock markets during the quarter continued to be interest rates, ongoing trade negotiations between the US and China and the slowdown in global economic growth. Most of the Fund's holdings delivered good results during reporting season that were in line with DS Capital's expectations. The Fund's cash level finished the quarter at 19%. DS Capital believe central banks will continue trying to stimulate growth by cutting rates, however, they noted, with most official rates at almost zero, rates are seemingly less effective at stimulating growth and therefore other forms of stimulus may be required. DS Capital are working on several new opportunities that they hope to progress to investments for the Fund and will provide more information on these in forthcoming updates.
More Information	Fund Profile Manager's Report

Three Seismic Tremors in September

10 Oct 2019 - Marcel von Pfyffer, Arminius Capital

The financial world was shaken by three seismic tremors during September 2019, but most people only noticed one of them, that being the drone attack on Saudi Arabia's oil processing plant. The other two, discussed in detail in this...

Performance Report: Cyan C3G Fund

8 Oct 2019 - Australian Fund Monitors

The Cyan C3G Fund rose +8.64% in September, outperforming the ASX200 Accumulation Index by +6.78% and taking annualised performance since inception in August 2014 to 21.23%.

8 Oct 2019 - Performance Report: Cyan C3G Fund

By: Australian Fund Monitors

Report Date	08 October 2019
Manager	Cyan Investment Management
Fund Name	Cyan C3G Fund
Strategy	Equity Long
Latest Return Date	September 2019
Latest Return	8.62%
Latest 6 Months	21.35%
Latest 12 Months	15.51%
Latest 24 Months (pa)	13.23%
Annualised Since Inception	21.23%
Inception Date	24 July 2014
FUM (millions)	AU$40
Fund Overview	The Cyan C3G Fund operates as a wholesale unregistered managed investment scheme under a unit trust structure. The Fund primarily invests in ASX listed companies outside the ASX 100 and typically holds between 15-35 stocks. Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged.
Manager Comments	The Cyan C3G Fund rose +8.64% in September, outperforming the ASX200 Accumulation Index by +6.78% and taking annualised performance since inception in August 2014 to 21.23%. By contrast, the Index has returned +8.14% p.a. over the same period with roughly the same level of volatility. The Fund's Sharpe ratio of 1.64 versus the Index's 0.62 indicates that the Fund has also achieved superior risk-adjusted performance to the market. In addition, the Fund's Sortino ratio of 3.43 versus the Index's 0.84, and down-capture ratio of -3.49%, highlight the Fund's capacity to significantly outperform in falling markets over the long term. There were numerous positive contributors to performance and few detractors in September. Seven of the Fund's holdings rose more than 30% over the course of the month and another 6 delivered impressive double-digit percentage gains. Top contributors included Alcidion (+65%), Oventus (+49%), Quickstep (+44) and Quickfee (+31%). Cyan noted external factors such as global political uncertainty and trade wars continue to cause bursts of volatility in equity markets. Their view is that, with historically low interest rates, investors are simply not being rewarded for conservative investment decisions. They added that, whilst the market may be trading at a slight premium to long term averages in terms of price to earnings ratios, low interest rates support company valuations and thus Cyan continue to see excellent investment opportunities at the smaller end of the market.
More Information	Fund Profile Manager's Report

Hedge Clippings | 04 October 2019

4 Oct 2019 - Australian Fund Monitors

If Hedge Clippings ever placed a bet on the week's news, this would have been the one to make a motza from the bookies. After all, everything that occurred over the past week was pretty predictable.

4 Oct 2019 - Hedge Clippings | 04 October 2019

By: Australian Fund Monitors

Hedge Clippings | Friday 04 October, 2019

A predictable week that was.

If Hedge Clippings ever placed a bet on the week's news, this would have been the one to make a motza from the bookies. After all, everything that occurred over the past week was pretty predictable.

Firstly, the RBA cut rates by 25bps as expected. OK, that was pretty easy, and we only came across one person (no names, but they'll know) who thought they wouldn't. Not only had the RBA's governor hinted strongly that they would, but all the economic indicators, both here and overseas, were pointing in that direction.

Next, the big four banks elected not to pass on the full 25bps to borrowers. Then both the Treasurer and the PM got stuck into them for not doing so, while the opposition jumped on the bandwagon to criticise the government. Three out of three, we could have taken out that trifecta with our eyes (and ears) closed.

However, spare a thought for the banks for a moment (we know, that's not always easy, and not predictable). Not passing the full cut on when rates are 1% was never going to happen simply because only a portion of their funding is tied to the RBA's cash rate. According to the AFR, 60 - 70% comes from deposits, including some on which the term is fixed. And for that portion which is in non-interest-bearing transaction accounts, their margins are being squeezed further.

Offshore was just as predictable. China put on a show of military goose-stepping force not seen for 75 years to celebrate the 70th anniversary of their "glorious" revolution, while the protesters in Hong Kong carried on protesting regardless.

Trump continued to tweet against the injustices of the Democrats and others, claiming he should be impeached or worse, while Boris continued to defy Europe, Jeremy Corbyn, and a fair section of his own party (plus the Speaker) - all of whom he couldn't give a toss about.

Finally, to the sporting field. Richmond flogged the Giants to such an extent that spectators should have asked for a refund on the price of their tickets. We might be biased, but that was mighty predictable as well.

The Wallabies made life difficult for themselves (something they've become experts at over the past few years) by selecting a goal kicker with a success rate this season of just 56% and losing a winnable match against Wales. While not totally predictable, sadly very familiar!

But then, against all the odds, we would have blown all our winnings backing Ireland against lowly Japan, who were inspirational, producing some of the most entertaining rugby seen for a while. Just as well we hadn't placed our bets - or collected our winnings - from the other un-losable wagers.

If you'd like to receive Hedge Clippings direct to your inbox each Friday

JOIN OUR MAILING LIST

Performance Report: Spectrum Strategic Income Fund

4 Oct 2019 - Australian Fund Monitors

The Spectrum Strategic Income Fund rose +0.24% in August, taking annualised performance since inception in June 2009 to +7.98% with an annualised volatility of 3.02%.

Presentation - Gyrostat Absolute Return Income Equity Fund

3 Oct 2019 - Gyrostat Capital Management

Gyrostat has for 34 consecutive quarters operated within a 'hard' defined risk parameter (no more than 3% capital at risk with our maximum draw-down 2.2% in any circumstances) always in place, delivered regular income at a minimum BBSW90 +...

Search for:
Fund:	Type a few letters to search
Manager:
Publish Dates:	From: To:

Fund Monitors Pty Ltd

News

NEWS

16 Oct 2019 - Fund Review: Insync Global Capital Aware Fund September 2019

15 Oct 2019 - Recession O'Clock, Australia?

14 Oct 2019 - Performance Report: Bennelong Kardinia Absolute Return Fund

11 Oct 2019 - Hedge Clippings | 11 October 2019

11 Oct 2019 - Performance Report: DS Capital Growth Fund

10 Oct 2019 - Three Seismic Tremors in September

8 Oct 2019 - Performance Report: Cyan C3G Fund

4 Oct 2019 - Hedge Clippings | 04 October 2019

4 Oct 2019 - Performance Report: Spectrum Strategic Income Fund

3 Oct 2019 - Presentation - Gyrostat Absolute Return Income Equity Fund

Category

Search

Events Calendar