The KIS Asia Long Short Fund returned +0.08% in August, taking annualised performance since inception in October 2009 to +12.99% versus the ASX200 Accumulation Index's +7.90%. This return has been achieved with an annualised volatility of only 5.17% versus the Index's 11.48%. The Fund's Sharpe and Sortino ratios, 1.88 and 4.26 respectively, by contrast with the Index's Sharpe of 0.48 and Sortino of 0.62, highlight the Fund's capacity to achieve superior risk-adjusted returns whilst focusing heavily on protecting investors' capital from the market's downside. This is also supported by the Fund's down-capture ratio since inception of -95.13%, indicating that the Fund, on average, has risen when the market has fallen.

On the winning side, the Fund's long position in TPG Telecom generated a return of 74bp in August. KIS have previously written about their positive outlook on TPG, however, KIS believe that, with regards to TPG's intended merger with Vodafone Hutchison Australia, the market has quickly priced in significant synergies and not assigned any meaningful probability that the ACCC may block the deal. As a result, KIS have closed their long position.

Key detractors in August included Marley Spoon-CDI (-37bp contribution), China Evergrande Group (-36bp), and Altium Limited (-33bp). KIS noted they are comfortable with their position in Marley Spoon-CDI, have reduced their short exposure in China Evergrande Group and have closed their short position in Altium Limited.

The Glenmore Australian Equities Fund rose +5.94% in August, outperforming the ASX200 Accumulation Index by +4.52%. Since inception in June 2017, the Fund has returned +38.85% p.a. versus the Index's +12.93%. Adjusting for risk, the Fund's Sharpe ratio for performance since inception is 3.67 versus the Index's 1.69, highlighting the Fund's capacity to achieve significantly superior risk-adjusted returns than the market. Looking at the downside, the Fund's Sortino ratio of 12.02 versus the Index's 1.34, along with the Fund's down-capture ratio since inception of -123.45%, emphasise the Fund's focus on avoiding downside losses (a negative down-capture ratio indicates that the Fund, on average, has achieved positive performance in the market's negative months).

Top contributors in August included Jumbo Interactive (+64.2%), Appen (+41.2%), Bravura Solutions (+30.6%), NRW Holdings (+23.9%), Pinnacle Investments (+19.8%), Alliance Aviation (+19.1%), Fiducian Group (+18.8%), Worley Parsons (+12.6%) and Atlas Arteria (+5.2%). The only notable detractor was Axsesstoday (-19.9%), however, the Fund exited AXL during the month and so didn't incur the full extent of the -19.9% decline.

Read the latest report for Glenmore's commentary on some of the Fund's best performing stocks in August.