The Paragon Australian Long Short Fund rose +21.4% in May, outperforming the ASX200 Accumulation Index by +17.04% and taking annualised performance since inception in March 2013 to +9.53% versus the Index's +6.13%. The Fund's down-capture ratio of 68.74% for performance since inception indicates that, on average, the Fund has outperformed during the market's negative months since it began.

Positive contributors in May came from the Fund's gold and technology holdings. Paragon maintain the view that the 1Q20 bear market is likely to prove cyclical, comparing most closely to the cyclical bear market crash of 1987 which was followed by the resumption of a secular bull market. Paragon are excited about the opportunities within their thematics and noted they are fully invested to capitalise. They also continue to find lucrative gold-equities which they expect to emerge as the next market leaders.

In their latest report, Paragon share their views on Pointsbet. They exited their profitable position in Pointsbet ahead of the March sell-off and took the opportunity to buy back in April at a materially lower price point. In the near-term, they see Pointsbet entering a positive catalyst cycle with the US national sports leagues progressively commencing, product (sports betting and iGaming) rolling out across more states, and further state access agreements to be executed.