NEWS
11 Oct 2013 - Fund Review: BlackRock Australian Equity Market Neutral Fund
BLACKROCK AUSTRALIAN EQUITY MARKET NEUTRAL FUND
Attached is our most recently updated Fund Review on the BlackRock Australian Equity Market Neutral Fund.
We would highlight the following:
- The Fund's portfolio generally consists of approx. 180 stocks in equally weighted long and short portfolios to maximise potential returns while minimising market volatility.
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The strategy has recorded a return of 12.14% since inception (Sept 2001) as compared to the ASX 200 Accumulation Index return of 8.37% and with a volatility less than one-half that of the Index at 5.7% pa as compared to 13.23% pa.
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The Fund has also recorded a maximum drawdown of 12.41% as compared to 47.19% for the Index and has had 78% positive months since inception.
- BlackRock is the world's largest fund management group. Since being established in 1988 it has grown organically and by acquisition to manage US$3.93 trillion as of March 2013.
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Operations cover 27 countries including Australia (where BlackRock has A$48.6 billion in FUM - March 2013) managing a broad range of strategies across a variety of asset classes.
Research and Database Manager
Australian Fund Monitors
11 Oct 2013 - Hedge Clippings
Rally on what?
The overnight rally on Wall Street, and the follow on today from the ASX200 would indicate that the "market" is confident that the political stalemate in the US is going to be resolved without, or before, the US defaults on its debt at the end of next week.
While most people would desire that to be the outcome, it would seem to stem more from hope than certainty. The two sides appear to be coming from the opposite ends of the spectrum, and there seems little goodwill between them. If anything, toes have been dug in on both sides, and talk of a six week debt extension to the ceiling wouldn't seem to justify the market's overnight rally.
Maybe the confirmation of Janet Yellen's appointment had something to do with it, but following Larry Summers's previous withdrawal that was a forgone conclusion anyway. Yellen's more likely to extend QE than start any early move to taper, but that would still not justify the extent of the Dow's overnight movement.
Meanwhile at home there seems to be improved confidence at the big end of town that is yet to filter down to small business and consumers. As yet there's no clarity on where earnings improvements are going to come from to replace the mining capex and investment boom, and no clarity on how the government will manage its minority in the Senate. What does seem clear is that the Palmer United Party, now with an effective four senators from next July, will have significant influence on any outcomes.
Equally clear is that Palmer himself will certainly liven things up. Hopefully both he and his senators will be more constructive and flexible than the members of the Tea Party within the Republicans in the US.
Specific results received this week include the following PERFORMANCE and NEWS UPDATES:
The Insync Global Titans Fund has just completed it's fourth year with a return of 9.26% (ASX 200 Accumulation 7.03%) and annualised volatility of 8.34% (index 12.35%) since inception.
Bennelong Kardinia Absolute Return Fund returned 0.93% for September bringing it's since inception (May 2006) return to 14.08% pa as compared to the ASX 200 Accumulation return of 4.44% pa. The Fund's annualised volatility is 7.85% which is low compared to the Index?s volatility of 14.79%, over the same time frame.
Updated FUND REVIEWS this week included the following Fund Managers:
The AFM Prism Active Equity Fund comprises a portfolio of 5 to 10 underlying Australian absolute return managers each investing in ASX listed equities with the objective of achieving double-digit annualised returns with significantly lower volatility than the underlying equity markets, and a focus on capital protection. To date the Fund has delivered 5.59% and, in keeping with the low volatility mandate, has an annualised standard deviation of 2.48% (since inception in October 2012). The Fund's maximum drawdown is 1.42% as compared to 6.72% for the ASX 200 Acc Index.
Bennelong Long Short Equity Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large cap stocks from the ASX/S&P100 Index, with a ten year track record and annualised net returns of over 20%. The Fund has had positive annual returns each year, including an 11.95% return in 2008 and 20.6% in 2011, both of which were negative years for the ASX200. The Fund's risk statistics are also sound with maximum drawdown of 12.22% and 71% positive months. Both the Sharpe Ratio at 1.27 and the Sortino ratio at 2.21, indicate a high reward-to-risk ratio.
The BlackRock Australian Equity Market Neutral Fund portfolio consists of approx. 180 stocks in equally weighted long and short portfolios to maximise potential returns while minimising market volatility. The strategy has recorded a return of 12.14% since inception (Sept 2001) as compared to the ASX 200 Accumulation Index return of 8.37% and with a volatility less than one-half that of the Index at 5.7% pa as compared to 13.23% pa. The Fund has also recorded a maximum drawdown of 12.41% as compared to 47.19% for the Index and has had 78% positive months since inception.
An upcoming event that may be of interest for Superannuation member administration and investment operation service providers is the Superannuation Fund Back Office conference coming up on 21-22 October. Visit the International Business Review Conferences website for more details.
If you are visiting Hong Kong, the UCITS Asia 2013 Conference is on 9-10 October. AFM have a 10% discount coupon available, more details here.
The Asset Allocation Conference is also coming up from 30th October to 1 November 2013 at the Grace Hotel in Sydney. Details are here.
Back in Hong Kong, the 26th Annual AVCJ Private Equity and Venture Form is at the Four Seasons Hotel from 12-14 November 2013.
IPARM Australia 2013 is being held in Sydney on 18-19 November on Investment Performance Measurement Attribution and Risk. Speakers include Dr Thomas Gillespie from Aurora Funds Management.
Also on 19 November, is the Art of Asset Management industry event for the asset management community, being held in Hong Kong, more here.
On that note, enjoy the week-end!
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
10 Oct 2013 - Fund Review: Bennelong Long Short Equity Fund
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 cap stocks from the ASX/S&P100 Index, with a ten year track record and annualised net returns of over 20%.
- Since inception in January 2002 the Fund has had positive annual returns each year, including an 11.95% return in 2008 and 20.6% in 2011, both of which were negative years for the ASX200.
- The Fund's risk statistics are also sound with maximum drawdown of 12.22% and 71% positive months. Both the Sharpe Ratio at 1.27 and the Sortino ratio at 2.21, indicate a high reward-to-risk ratio.
- The consistent returns across the investment history indicates the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market.
Research and Database Manager
Australian Fund Monitors
Bennelong Long Short Equity Fund September 2013 (pdf format)
9 Oct 2013 - Fund Review: Prism Active Equity Fund
AFM PRISM ACTIVE EQUITY FUND
Attached is our most recently updated Fund Review on the AFM Prism Active Equity Fund.
Attached is our most recent update of the Fund:
- The Prism Active Equity Fund ("Fund") comprises a portfolio of 5 to 10 underlying Australian absolute return managers each investing in ASX listed equities.
- The Fund's objective is to achieve double-digit annualised returns with significantly lower volatility than the underlying equity markets, with a focus on capital protection.
- To date the Fund has delivered 5.59% and, in keeping with it's low volatility mandate, has an annualised standard deviation of 2.48% (since inception in October 2012). The Fund's maximum drawdown is 1.42% as compared to 6.72% for the ASX 200 Accum Index
- Fund selection is made based on a combination of quantitative analysis of past performance and risk, coupled with extensive analysis and due diligence of the underlying manager's processes and pedigree.
Research and Database Manager
Australian Fund Monitors
Prism Active Equity Fund August 2013 (pdf format)
4 Oct 2013 - Hedge Clippings
September performance:
Based on very early indications, with just over 6% of equity fund's performances received to date, September looks to have been a positive month for the industry, with an average return of 4.4% against the ASX200 Accumulation index which rose 2.19%.
The major caveat to the results to date is the very small sample - 6% - while it is also worth remembering that the ASX200 fell by over 1% on the last day in September. I have no doubt that as other results come to hand the headline number will fall somewhat, but in the meantime the 2013 YTD figure for equity funds is 17.41% (vs ASX200 at 16.15%) and 22.74% on a rolling 12 month basis, vs the ASX200 at 24.21%.
It is also worth remembering that these figures are not adjusted or weighted to funds under management, but rather are a simple average by fund, with the bulk of funds being equity long/short.
ASIC's new disclosure regime:
Yesterday ASIC released its updated Regulatory Guide 240 entitled Hedge funds: Improving disclosure. Previously ASIC's definition of a hedge fund was governed either by the rather obvious definition that it called itself one, or it had two or more of one of the following five characteristics: A complex investment strategy, use of short selling, use of leverage, use of derivatives, and finally charged a performance fee.
We have always supported this, albeit that frequently just one of the five ASIC criteria (particularly short selling) would have triggered the definition in our opinion. In any event the key changes would seem to be in the push for increased transparency in a fund's offer documents, which in turn should enable a greater understanding by investors and their advisors. We wholeheartedly support the thrust of this also.
ASIC's RG240 is focused on retail investors, whereas sophisticated or institutional investors are considered to have sufficient knowledge or expertise, or should be able to afford to hire it. Much of ASIC's thrust seems to come from the Trio experience which cost investors over $100 million and while not criticising ASIC in any way, the reality is that a lack of disclosure was not the issue in that failure. Trio's losses were firstly the result of deliberate fraud on behalf of the management and those close to them, and secondly from the failure by those that should have asked the right questions (mainly the research houses but also those close enough to management who should have known what was going on) not doing so.
While the new RG240 increases the detail and complexity of the definition of a hedge fund, the vast majority already comply with the new increased disclosure regime, or will have little difficulty in doing so. Those that are uncomfortable about the increased transparency will no doubt focus on the institutional investor where ASIC's new regulations won't apply.
Specific results received this week include the following PERFORMANCE and NEWS UPDATES:
The BlackRock Multi Opportunity Fund has a five year track record of 9.00% pa as compared to the ASX 200 Acc Index return of 4.63% and the RBA Cash Rate return of 3.96%. The Fund recorded this return with an annualised standard deviation of 4.44% as compared to the Index number of 15.48% pa. For the month of August the Fund returned -0.28% and the 12 month return is 6.24%.
LHC Capital High Conviction Fund has returned 2.77 times the ASX 200 Accumulation Index since inception in May 2011. The Fund's annualised return is 21.37% pa as compared to the Index with 7.69% pa. This return was achieved with approximately three-quarters of the volatility recorded by the Index.
The BlackRock Australian Equity Market Neutral Fund returned -0.04% during August with a five year annualised return twice that of the ASX 200 Acc Index (9.73% as compared to 4.73% respectively) and less than half the volatility (6.65% compared to 15.48%).
Monash Absolute Investment Fund returned 7.15% during September (ASX 200 Acc 2.19%) with a net exposure of 81% and gross exposure of 91%. The sound risk- reward of the Fund is indicated by the since inception (June 2012) Sharpe Ratio of 2.82 and the largest draw-down of -1.35% as compared to the Index of -6.72%. The Manager notes that the portfolio more than kept up with the broader market this month despite action taken to protect returns by: trimming some holdings; increasing cash, and; adding to the short positions.
The Bennelong Long Short Equity Fund has a five year performance record of 16.85% vs 4.63% for the ASX200 and an annualised standard deviation of 12.63% compared to 15.48%.
An upcoming event that may be of interest for Superannuation member administration and investment operation service providers is the Superannuation Fund Back Office conference coming up on 21-22 October. Visit the International Business Review Conferences website for more details.
If you are visiting Hong Kong, the UCITS Asia 2013 Conference is on 9-10 October. AFM have a 10% discount coupon available, more details here.
The Asset Allocation Conference is also coming up from 30th October to 1 November 2013 at the Grace Hotel in Sydney. Details are here.
Back in Hong Kong, the 26th Annual AVCJ Private Equity and Venture Form is at the Four Seasons Hotel from 12-14 November 2013.
IPARM Australia 2013 is being held in Sydney on 18-19 November on Investment Performance Measurement Attribution and Risk. Speakers include Dr Thomas Gillespie from Aurora Funds Management.
And now for something completely different, if only I could get my wife's pug Harry to be as well trained as this.
On that note, enjoy the week-end!
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
27 Sep 2013 - Hedge Clippings
Just as markets in the USA had readjusted to Ben Bernanke's new "no taper" policy update, along come negotiations between Democrats and Republicans over budget negotiations with the potential for the US government to run out of funding by mid October. This would force government employees to face taking temporary unpaid leave, delaying payments to the military, and closure of some administrative departments. Naturally members of Congress would continue to be paid as usual.
At stake it would seem is the passage of the Affordable Care Act, or "Obamacare" as it has become known. Presuming that no-one wants to be responsible for the political fallout of the budget not being passed, the focus will then fall on the so called debt ceiling. This currently sits at just under $17 billion or $53,500 per US citizen, and by mid October there will only be $30 billion to meet commitments which includes a $60 billion social security payment due at the beginning of November.
If you want to look at a neat graphic calculator of the actual numbers involved, click here. The Australian version can be seen here.
There's an element of deja vu in this as the same concerns spooked markets two years ago. However it highlights two other over-riding issues that seem to dominate markets and economies post 2008. The first is that there aren't too many governments around the world that aren't facing increasing outlays, but are not prepared to increase taxation to balance the books.
The second seems to be that politics and politicians are driving markets as much as, or more than fundamentals. This is not only in the US, but also across Europe. The same might be said of China, except there the politicians are expected to control the outcome, at least have a longer time horizon, and don't have to concern themselves over pesky elections to the same degree.
Australia has the same problem as the US and Europe: Everyone seems to want more welfare and lower taxation - but no-one's prepared to pay for it or give up what they already have. And no-one wants to factor in an increase in the GST.
Specific results received this week include the following PERFORMANCE and NEWS UPDATES:
Pengana Australian Equities Market Neutral Fund completed its fifth year of operation recording an annualised return of 9.60% pa compared to the benchmark (ASX 200 Acc Index) return of 4.63%. Since inception the Fund has an annualised standard deviation of 8.02% compared to 15.48% (Index) and the risk-reward and risk statistics are sound with a Sharpe ratio of 0.7 (0.12 Index) and a Sortino Ratio of 1.06 (0.06 Index).
The Totus Alpha Fund rose 2.1% during August with net exposure of 41%. Since inception in April 2012 the Fund has returned 29.1% (24.2% ASX 200 Acc Index) with a Sharpe Ratio of 1.41, Sortino Ratio of 3.14 and a down capture ratio of -0.84. The Fund also has a negative correlation of -0.209 to the Index.
Allard Investment Fund returned -1.0% during August with an allocation of 67.1% equity and 32.9% cash and fixed income. In terms of geographic allocation the Fund's major allocations are 32.1% HK/China and 13.1% Singapore and in terms of industry the biggest exposure is financial services at 14.5% and conglomerates, 12.2%.
The Intelligent Investor Value Fund returned 1.13% in August and 40.05% over the 12 previous months. The Fund has a since inception (November 2009) annualised return of 14.05% pa as compared to the ASX 200 Accumulation Index of 7.32% return over the same time frame. The Fund's value strategy is shown by the Sharpe Ratio of 0.73 as compared to the Index Sharpe Ratio of 0.32 (since inception).
Updated AFM Fund Reviews were also completed on the following funds this week:
The Insync Global Titans Fund invests in a concentrated portfolio of 15-25 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection. Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets. The investment strategy has delivered above MSCI ($A) benchmark performance over the medium and longer terms with limited draw-downs and excellent risk statistics. The Sharpe ratio is 0.67 (ASX 200 Acc 0.26) and Sortino ratio 1.17 (ASX 200 Acc 0.28) and are well above those of the ASX with downside deviation approximately one-half of the same Index since inception.
Next Tuesday, 1 October 2013 at 5.30pm sees one of the newer Sydney fund managers, Auscap Asset Management heading to Brisbane to present their current perspective on equities. Tickets are limited, but if interested contact [email protected].
An upcoming event that may be of interest for Superannuation member administration and investment operation service providers is the Superannuation Fund Back Office conference coming up on 21-22 October. Visit the International Business Review Conferences website for more details.
If you are visiting Hong Kong, the UCITS Asia 2013 Conference is on 9-10 October. AFM have a 10% discount coupon available, more details here.
The Asset Allocation Conference is also coming up from 30th October to 1 November 2013 at the Grace Hotel in Sydney. Details are here.
Back in Hong Kong, the 26th Annual AVCJ Private Equity and Venture Form is at the Four Seasons Hotel from 12-14 November 2013.
IPARM Australia 2013 is being held in Sydney on 18-19 November on Investment Performance Measurement Attribution and Risk. Speakers include Dr Thomas Gillespie from Aurora Funds Management.
In the last few week's "Clippings" we have mentioned some notable anniversaries - the collapse of LTCM and Lehman Brothers in particular. This week's "and now for something different" remembers Australia 11 winning the America's Cup, coincidentally in the same week 30 years later as the Americans boat (skippered by an Aussie I might add) won it back from our New Zealand cousins. At a lunch to remember the time 30 years ago that the then Prime Minister Bob Hawke donned his famous jacket, he wore it again to take the stage and tell this joke. Take it away Bob ...
On that note, enjoy the week-end!
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
great way to end each year.
27 Sep 2013 - AVCJ Private Equity Forum
AVCJ Private Equity Forum
12-14 November 2013 - Four Seasons Hotel, Hong Kong
AVCJ is delighted to be hosting the 26th annual AVCJ Private Equity & Venture Forum in Hong Kong this November.
What's new in 2013?
- Emerging market focus groups
- Technical workshops
- Women in private equity roundtable
- Sector focus - energy and real estate
- Meet the managing partners breakfast
- Spotlight on family offices
Meet 1,000+ global PE professionals; Network with more than 250 LPs; Hear from 170+ industry leading speakers.
PACKAGES
Diamond (fees include three-day Investment summit on 12-14 November, PE leaders - Summit and VC Summit, refreshments, luncheons, evening receptions and dinner as per the programme; and all conference documents) US$3,895/HK$31,160 each
Platinum (fees include two-day Investment summit on 13-14 November, refreshments, luncheons, evening receptions and dinner as per the programme; and all conference documents) US$3,295/HK$27,260 each
Please feel free to contact Sally from AVCJ at the numbers below:
Sally Au | Sales Executive, Asia Pacific | Incisive Media
T: + 852 3411 4856 | F: + 852 3411 4811
AVCJ Private Equity Forum (pdf format)
25 Sep 2013 - Fund Review: Insync Global Titans Fund
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Global Titans Fund invests in a concentrated portfolio of 15-25 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- The investment strategy has delivered above MSCI ($A) benchmark performance over the medium and longer terms with limited drawdowns and excellent risk statistics.The Sharpe ratio is 0.67 (ASX 200 Acc 0.26) and Sortino ratio 1.17 (ASX 200 Acc 0.28) and are well above those of the ASX with downside deviation approximately one-half of the same Index since inception. The Fund has a record of 62% positive months and a downside capture ratio of -0.42 over the same time frame.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
Research and Database Manager
Australian Fund Monitors
Fund Review: Insync Global Titans Fund (pdf format)
20 Sep 2013 - Hedge Clippings
Five years ago this week the world's financial system was in meltdown mode as Lehman Brothers filed for bankruptcy protection (September 15th 2008) and by September 22nd a deal was put to the bankruptcy court which saw Barclays acquire Lehman's core business. This was closely followed on 22nd September by Nomura acquiring Lehman's Asia Pacific businesses, including those in Australia.
Bankruptcy Judge James Peck was quoted as saying that Lehmans was "in effect the only true icon to fall in a tsunami that has befallen the credit markets." In reality plenty of others fell also, including local Australian companies such as Babcock and Brown and Allco, although whether they were "true icons" is perhaps debatable.
On the 15th September the Dow closed down 4.4%, and on September 29th it fell by an even larger 7%. Panic gripped investors as credit markets froze, counter party risk went off the Richter scale, and wealthy investors reputedly backed their cars up to their local bank branch with empty suitcases at the ready.
To be fair to Kevin Rudd and his so called "gang of four" the decision at the time to effectively guarantee the Australian banks prevented complete panic. Those not prepared to give Rudd any credit for anything will no doubt claim he did the only thing possible, and for once took the advice of others more knowledgeable than himself.
Wind forward five years and the Dow is back at record territory thanks to QE tapering being shelved indefinitely, while the ASX200 is at five year highs but still around 20% below its pre crisis highs. In spite of this some US based funds are rumoured to be shorting the Australian banks, based on their valuations and the risk of a property bubble.
Given the total reported short positions of the big four banks as per ASIC's reports dated 10th range from a low of 0.23% (NAB) to 0.72% (WBC) of total outstanding shares they're certainly not piling into the trade with their ears pinned back, which is probably sensible. Australian house prices might be expensive, but given local factors such as supply and demand, low interest rates, immigration and negative gearing they're unlikely to collapse any time soon.
Meanwhile fully franked bank yields (over 5% pre franking) and the lowest interest rates in most borrower's memory will probably support valuations as well. Of all these factors the removal of negative gearing probably poses the greatest threat, but given Tony Abbott's only just been elected, he's unlikely to want to jump off the political cliff quite that quickly.
So markets seem underpinned, hooked on QE. Maybe Ben Bernanke didn't want to end his tenure on a sour note.
An upcoming event that may be of interest for Superannuation member administration and investment operation service providers is the Superannuation Fund Back Office conference coming up on 21-22 October. Visit the International Business Review Conferences website for more details.
If you are visiting Hong Kong, the UCITS Asia 2013 Conference is on 9-10 October. AFM have a 10% discount coupon available, more details here.
The Asset Allocation Conference is also coming up from 30th October to 1 November 2013 at the Grace hotel in Sydney. Details are here.
IPARM Australia 2013 is being held in Sydney on 18-19 November on Investment Performance Measurement Attribution and Risk. Speakers include Dr Thomas Gillespie from Aurora Funds Management.
Specific results received this week include the following PERFORMANCE and NEWS UPDATES:
Insync Global Titans Fund recorded -1.95% during August with the Fund's low risk shown by the maximum drawdown of -2.04% (ASX Accumulation Index -6.72%) over the last 12 months. The low risk attributes are further indicated by its downside deviation of 3.16% (Index 5.93%) and a down capture ratio of -0.80, also over the last 12 months.
The Pengana Asia Special Events (onshore) Fund returned 1.03% during August 2013 with gross and net exposure averaging 158% and 12% respectively. Short index futures protected the Fund during the month, while non-directional trades such as M&A and stubs trades also contributed positively to performance. Malaysian and Japanese trades proved particularly profitable during the month.
Auscap's Long Short Australian Equities Fund had a strong August returning 4.28% with an average net exposure of 61.1% (96.1% long and 35.0% short) across 22 long positions and 13 short positions. The Fund's biggest exposures were spread across consumer discretionary, financials, healthcare and telecommunications sectors. The manager has written an interesting article on the relative merits of investing in large and mid cap versus small caps. You can read the report here.
Updated AFM Fund Reviews were also completed on the following funds this week:
The Bennelong Kardinia Absolute Return Fund has returned consistent top decile long short equity sector performance with a since inception (May 2006) return of 14.11% pa (ASX Accumulation Index 4.18% pa) and a standard deviation of 7.89% pa (Index 14.86%) indicating the Fund's ability to generate strong risk-adjusted returns. The Fund is long biased, research driven, active equity long/short strategy investing in listed ASX companies with a seven year track record.
Optimal Australia Absolute Trust is a specialist Australian equity investment manager and the Fund has recorded out-performance of the market since inception in September 2008 with approximately 84% of monthly performances having positive returns and the largest drawdown -1.38%. The Fund has a long/short equity strategy typically with a low but variable net market exposure comprising 40 to 65 stocks broadly selected from within the ASX200.
The Aurora Fortitude Absolute Return Fund has an 8 year track record investing in ASX listed equities. Over 87% of monthly performances have been positive, with no losing months in 2008 and a largest drawdown of -2.09%. Strong use of low risk "long" derivatives and option overlays has provided positive returns with low volatility during periods of market dislocation.
Morphic's Global Opportunities Fund is a global equity long/short manager with a long bias and a macro-economic overlay. The mandate allows the Fund to short sell, use derivatives and invest in assets such as commodities and currencies. Morphic's philosophy is that only funds with flexible hedging strategies will be able to deliver acceptable, steady, real, absolute returns over the investment cycle. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's very high Sortino ratio of 14.88 and maximum drawdown of -0.52%.
For something completely different - tomorrow is Leonard Cohen's 79th birthday. For someone who spent a reasonable part of his mis-spent youth listening to tracks such as "Suzanne" and "Bird on a Wire" I thought you might like to listen to the great man's live recording (and his explanatory preamble) of Chelsea Hotel. According to Wikipedia the landmark Chelsea Hotel is currently closed for renovations, but remains a feature in many films, songs and books.
On that note, enjoy the week-end!
Regards,
Chris
CEO, AUSTRALIAN FUND MONITORS
19 Sep 2013 - Fund Review: Morphic Global Opportunities Fund
MORPHIC GLOBAL OPPORTUNITIES FUND
AFM has updated the Fund Review on the Morphic Global Opportunities Fund.
Key points include:
- The Fund is a global equity long/short manager with a long bias and a macro-economic overlay. The mandate allows the Fund to short sell, use derivatives and invest in assets such as commodities & currencies.
- Portfolio construction is stock selection agnostic with a bias to value based and momentum strategies. Risk management is a primary consideration in portfolio construction and the strong emphasis on risk is evidenced by the Fund's very high Sortino ratio of 14.88 and maximum drawdown of -0.52%.
- Morphic's philosophy is that only funds with flexible hedging strategies will be able to deliver acceptable, steady, real, absolute returns over the investment cycle.
- The Fund is an early stage, boutique, Sydney-based fund established in 2012 with experienced CIO's, and an investment team of 6 including a risk manager.
- The Board has a majority of independent members with significant risk and investment experience.
The full Review can be accessed from the link below, or from the Fund's Profile page.
For further details on the Fund, please do not hesitate to contact us.
Research and Database Manager
Australian Fund Monitors
Morphic Global Opportunities Fund (pdf format)
