NEWS
Cyan C3G Fund
14 Oct 2016 - Australian Fund Monitors
Cyan C3G Fund rose 1.70% in September, outperforming the market (ASX 200 Total Return Index) that returned 0.48%, by 1.22%.
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14 Oct 2016 - Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | 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 | Many of the Fund's existing holdings performed well, including PSC Group (PSI), Afterpay (AFY), and Adacel. The only fall of any significance was Blue Sky (BLA) that retraced a modest 3%. The Fund also added a couple of new positions, OTOC (OTC) and SRG Group (SRG) during the month of September. The Fund continues to have a well-diversified portfolio, which has exposure to the Consumer Discretionary, Consumer Staples, Financials, Industrials and Health Care sectors. Click below to read the latest Fund Manager's Report. |
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Pengana Absolute Return Asia Pacific Fund
14 Oct 2016 - Australian Fund Monitors
The Pengana Absolute Return Asia Pacific Fund returned 1.67% in September, compared to MSCI ACWI Asia Pacific markets which were returned +1.13%.
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14 Oct 2016 - Pengana Absolute Return Asia Pacific Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund will usually hold 40 to 80 positions and will be well diversified across the various event strategies. In keeping with the absolute return focus the Manager will eliminate market risk where appropriate by hedging market and foreign currency risks. Since inception the Fund has averaged a net equity market exposure of ~10%. Sizing of an investment position will depend on the expected risk adjusted returns while taking account the liquidity and volatility of the stock. In addition, the maximum potential loss on any one position should be greater than 0.5% of the NAV and the position should not exceed 30% participation of stressed volume assuming a $200m NAV. Other criteria considered are ability to hedge and the availability of pair candidates as well as the average bid-ask size. For M&A strategies average long position is 3 to 5.5% and average short position 2 to 5%. |
| Manager Comments | The M&A sub-strategy contributed significantly to September's performance as a number of situations the Fund was involved with, had positive developments. While gross exposure in this sub-strategy fell to 39.6%, as a number of deals closed, the Fund was able to initiate new trades. Gross exposure also fell slightly to 34% in the Stubs strategy as the Fund booked in profits from spreads that reverted to normalized levels. Within other strategies, the Credit sub-strategy posted a small positive 30 basis points contribution to overall performance. For the month, the Fund averaged a gross and net exposure of 190.3% and 12.9% respectively. Click below to read the latest Fund Manager's Report. |
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Fund Review: Bennelong Long Short Equity Fund September 2016
13 Oct 2016 - Australian Fund Monitors
September Fund Review is now available on Bennelong Long Short Equity Fund which has an annualised return of 17.02% p.a.
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13 Oct 2016 - Fund Review: Bennelong Long Short Equity Fund September 2016
By: Australian Fund Monitors
AFM Fund Review - September 2016 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large large-caps from the ASX/S&P100 Index, with over fourteen-year track record and annualised returns of 17.02%.
- The consistent returns across the investment history indicate the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 1.02 and 1.70 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - September 2016 (pdf format)
The Paragon Fund
13 Oct 2016 - Australian Fund Monitors
The Paragon Fund rose 4.30% in September, outperforming the ASX 200 Accumulation Index which returned 0.48%, by 3.82%.
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13 Oct 2016 - The Paragon Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon believes that markets are not always efficient, exhibiting a common tendency to price securities well outside of their intrinsic value over the medium term. This market characteristic provides the opportunity for Paragon, an active manager with a flexible mandate, to generate superior investment returns over the longer term. Paragon believes that it is critical to understand both the companies and the industries in which they operate, in order to fully comprehend each investment opportunity. Accordingly, a fundamental approach to company research is taken. Assessing the potential downside is also paramount in framing the risk/reward trade-off for potential investments. |
| Manager Comments | Main contributors in September were Kidman Resources, Mayne Pharma, gold holdings and a short position in Pilbara Minerals. At the end of the month, the Fund had 32 long positions and 11 short positions, with a net exposure of 89.2%. The Fund held 10.8% of the portfolio as cash. Click below to read the latest monthly report. |
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Alexander Credit Opportunities Fund
12 Oct 2016 - Australian Fund Monitors
Alexander Credit Opportunities Fund rose 0.75% in September to take annualised return since inception to 16.64% p.a.
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12 Oct 2016 - Alexander Credit Opportunities Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund may also invest in derivatives for hedging purposes. The portfolio of the Fund comprises primarily Investment Grade holding of 75% of the Fund's assets. Benchmark allocations are Australasia 50% to 100%, North America 0% to 50% and Europe 0% to 50%. Currency hedging may take place depending on benefits to the Fund. |
| Manager Comments | During the month, the Fund closed another private debt transaction and is now the senior secured lender to an Australian micro-finance company. This position will provide a solid return for the Fund but with a significant amount of security. The Fund will continue to look for similar opportunities to lend to small to medium sized domestic companies that offer an attractive return on a secured basis. For September, the majority of the portfolio was allocated in the Residential Mortgage-Backed Securities (RMBS) at 47%, followed by Corporate Bonds/Loans at 28%. Click below to read the latest monthly report. |
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Bennelong Kardinia Absolute Return Fund
12 Oct 2016 - Australian Fund Monitors
Bennelong Kardinia Absolute Return Fund returned -0.22% in September to take annualised return since inception to 11.59% p.a.
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12 Oct 2016 - Bennelong Kardinia Absolute Return Fund
By: Australian Fund Monitors
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| 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 | Long positions in BHP, South32 and RIO were the largest positive contributors, whilst TPG Telecom, Skycity Entertainment and S2 Resources were the largest detractors from performance. Net equity market exposure (including derivatives) increased from 45.4% to 46.7% (64.7% long and 18.1% short). Click below to read the latest Fund Report. |
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Pengana Global Small Companies Fund
11 Oct 2016 - Australian Fund Monitors
Pengana Global Small Companies Fund rose 0.60% in September 2016, outperforming the MSCI AC World SMID Cap Index by 1.2%.
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11 Oct 2016 - Pengana Global Small Companies Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund is managed by Founder & CIO Leah Zell, and Portfolio Managers Jon Moog and David Li. The Lizard investment team have over 50 years combined investment experience in global small cap investing. Leah Zell has over 30 years of experience and is a recognized expert in international investing in the international small-cap category. The Fund's investment team uses a value-oriented investment approach to small and mid-cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception. The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed. Derivatives may be used to achieve long or short exposures, reduce risk and reduce transaction costs. Derivatives will not be used for the purposes of leverage and the Fund's net exposure will never be short. |
| Manager Comments | The top positive contributors for the month were boohoo.com Plc, Moleskine SpA, Halogen Software, Inc., Fagron NV and Valmet Corp. However, Credito Real S.A. de C.V., Sarine Technologies Ltd, CarMax, Inc., Softcat Plc, and Liberty Tax, Inc. Class A detracted from the performance. At month-end, the Fund's top 10 holdings accounted for 37% of the Fund's assets, with no single name representing more than 5.5% of the Fund. Cash increased from the prior month to 10.1% of the Fund. Click below to read the latest Fund Manager's report. |
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Optimal Australia Absolute Trust
10 Oct 2016 - Australian Fund Monitors
The Optimal Australia Absolute Trust recorded a net return of 0.56% in September.
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10 Oct 2016 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
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| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. |
| Manager Comments | The Fund enjoyed strong gains in stocks such as Orica and Aurizon that have been beaten up by exposure to the commodity complex, and which offered very substantial valuation discounts and/or self-help stories. However, the Fund's holding in Hendersons and Clydesdale Bank was a substantial drag on performance during the month, but have done much better so far in October. At month-end, the Fund had a gross exposure of 94.6% and net exposure 3.8%. Click below to read the latest Fund monthly report. |
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Bennelong Long Short Equity Fund
7 Oct 2016 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned -1.06% in September but is up +30.13% for the latest 24-months.
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7 Oct 2016 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| 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. |
| Manager Comments | The Fund's performance was hit by their holding in the telco pair of Long TPG Telecom / Short Telstra, following the release of TPG's 2016 earnings results. While the reported results were in-line with expectations, the 2017 profile guidance from the company disappointed investors, falling approximately 7% short of the market estimate. For the month, the top three spreads for the month were long Oil Search / short Santos, long Crown Resorts / short Skycity Entertainment, and long Challenger/ short ANZ. The bottom three spreads for the month were long TPG Telecom / short Telstra, long Bluescope / short Sims Metal and long James Hardie / short CSR Limited. Click below to read the Fund Manager's commentary and market outlook. |
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Fund Review: QATO Capital Market Neutral Long/Short Fund August 2016
4 Oct 2016 - Australian Fund Monitors
Latest Fund Review is now available on QATO Capital Market Neutral Long/Short Fund, investing exclusively in S&P/ASX 100 stocks.
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4 Oct 2016 - Fund Review: QATO Capital Market Neutral Long/Short Fund August 2016
By: Australian Fund Monitors
AFM Fund Review - August 2016 (pdf format)
QATO Capital Market Neutral Long/Short Fund
Attached is our most recently updated Fund Review on the QATO Capital Market Neutral Long/Short Fund.
We would like to highlight the following aspects of the Fund;
- Qato Capital is a Melbourne-based boutique fund manager backed by single family office, Larkfield Funds Management.
- Qato has a systematic, market-neutral strategy which invests exclusively in S&P/ASX 100 stocks.
- The QATO Capital's Q-score process captures and quantifies six broad fundamental factors, which assess multiple underlying sub-categories. Those companies with the top score (quality companies) are included in the "long" portfolio, those with the lowest score are sold short.
- The Fund seeks to preserve capital and maximises absolute returns through active and constant risk management, targeting monthly a net market exposure of 0% to hedge broader market risks through 30 S&P/ASX-100 positions (15 long & 15 short equally-weighted positions).
- Qato Capital's process is entirely systematic - stock selection and risk management are employed in a rules-based approach. The Fund employs no financial leverage/gearing to purchase securities, no derivatives, and no financial products to imitate leverage.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - August 2016 (pdf format)
