News
The Paragon Fund
8 Jul 2016 - Australian Fund Monitors
The Paragon Fund rose 6.30% after fees for the month of June, outperforming the Index which returned -2.45%, by 8.75%.
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8 Jul 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 | Key positive contributors included longs in various gold and lithium holdings, as well as Mayne Pharma and A2 Milk, offset by long positions in Netcomm Wireless, Link Administration and Costa Group. At the end of the month, the Fund had 32 long positions and 13 short positions. Click below to read the latest monthly report. |
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Bennelong Long Short Equity Fund
7 Jul 2016 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned -1.04% in June and 24.05% over the last 12 months.
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7 Jul 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 negative return was mainly due to the macro shock of Brexit. The Fund holds a number of positions in companies with exposure to Britain and Europe, both long and short. Some positions benefited from the change in events in Britain and Europe however overall performance was impacted mainly from the Fund's long holding in Henderson Group (paired to AMP). The Fund's performance did benefit from two pair positions in the mining services and materials sectors. Click below to read the Fund Manager's commentary and market outlook. |
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Meme Australian Share Fund
6 Jul 2016 - Australian Fund Monitors
The Meme Australian Share Fund rose 0.61% for the month of June 2016.
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6 Jul 2016 - Meme Australian Share Fund
By: Australian Fund Monitors
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| Fund Overview | The Fund's investment strategy seeks to identify low-risk entry opportunities and then build positions in these stocks. Once established in the portfolio, individual stock holdings are maintained for as long as their long-term upward trend remains intact and while they continue to make positive contributions to portfolio growth. Positions are reduced and ultimately closed out as their trends become exhausted or as their relative long-term performance against the broad market weakens. The Fund believes that longer time frame investments also provide a number of advantages. The effect of false signals and 'noise' which attend shorter term time frames is mitigated by only attending to signals which are confirmed by our longer term assessments. Also, the Fund gains exposure to the more expansive price trends which can last for months and years, allowing dividends and distributions received during this time to further enhance portfolio returns. |
| Manager Comments | The five most positive contributors to the fund's June performance were Dacian Gold, Resolute Mining, Newcrest Mining, Saracen Minerals and Antipa Minerals. While the five most negative contributors were Emerchants Limited, Altura Mining, Medibank Private, MGC Pharmaceuticals and IRESS Limited. Allocations to ASX-100 stocks reduced further from about 15.5% to 15.1% of the Fund's holdings, while stocks outside the ASX-200 continue to account for the bulk of the portfolio's holdings, increasing to about 68% of the Fund's value. By month-end, the total number of portfolio stocks had risen 91 separate holdings and the cash was at approximately 18%, primarily due to fund inflows. Click below to read the latest Fund Manager's commentary on the Fund. |
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Fund Review: Insync Global Titans Fund May 2016
4 Jul 2016 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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4 Jul 2016 - Fund Review: Insync Global Titans Fund May 2016
By: Australian Fund Monitors
AFM Fund Review - May 2016 (pdf format)
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 Fund's unit price increased by 6.3% in May. The performance was driven by positive contributions from the holdings in Microsoft, Medtronic, Zimmer Holdings, Comcast and Reckitt Benckiser. A small negative contribution came from the holding in Mead Johnson Nutrition.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 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.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - May 2016 (pdf format)
Fund Review: QATO Capital Market Neutral Long/Short Fund May 2016
30 Jun 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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30 Jun 2016 - Fund Review: QATO Capital Market Neutral Long/Short Fund May 2016
By: Australian Fund Monitors
AFM Fund Review - May 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 maximise 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 - May 2016 (pdf format)
KIS Asia Long Short Fund
29 Jun 2016 - Australian Fund Monitors
KIS Asia Long Short Fund returned -0.25% for the month of May.
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29 Jun 2016 - KIS Asia Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate across a number of other investment strategies is reserved. These strategies may include, but not be limited to: convertible bond investments, portfolio hedging, equity related arbitrage, special situations (e.g. merger arbitrage, rights offerings, participation in international public offerings and placements, etc.). The Fund's geographic focus is Asia excluding Japan, but including Australia). The Fund may invest outside of this region to the extent that: 1. The investment decision is driven from the Asian region or; 2. The exposure is intended to mitigate risk or enhance return from factors external to the Asian region. |
| Manager Comments | Click below to read the latest monthly Fund Report. |
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Insync Global Titans Fund
28 Jun 2016 - Australian Fund Monitors
The Insync Global Titans Fund returned +6.30%, outperforming the MSCI All Country World ex-Australia Net Total Return Index in $A, which returned 5.5%, by 0.80%.
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28 Jun 2016 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | The performance was driven by positive contributions from the holdings in Microsoft, Medtronic, Zimmer Holdings, Comcast and Reckitt Benckiser. A small negative contribution came from the holding in Mead Johnson Nutrition. Click below to read the latest Fund Manager Report. |
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Fund Review: Bennelong Twenty20 Australian Equities Fund May 2016
27 Jun 2016 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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27 Jun 2016 - Fund Review: Bennelong Twenty20 Australian Equities Fund May 2016
By: Australian Fund Monitors
AFM Fund Review - May 2016 (pdf format)
BENNELONG TWENTY20 AUSTRALIAN EQUITIES FUND
Attached is our most recently updated Fund Review on the Bennelong Twenty20 Australian Equities Fund.
- The Bennelong Twenty20 Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of stocks outside the Top 20. Construction of the ex-top 20 portfolio is fundamental, bottom-up, core investment style, biased to quality stocks, with a structured risk management approach.
- Mark East, the Fund's Chief Investment Officer, and Keith Kwang, Director of Quantitative Research have over 50 years combined market experience. Bennelong Funds Management (BFM) provides the investment manager, Bennelong Australian Equity Partners (BAEP) with infrastructure, operational, compliance and distribution services.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - May 2016 (pdf format)
Pengana PanAgora Absolute Return Global Equities Fund
27 Jun 2016 - Australian Fund Monitors
Pengana PanAgora Absolute Return Global Equities Fund returned 0.88% for the month of May. The Fund has low systematic risk (beta) to the ASX200 and the MSCI World Indices of 0.07 and 0.08 respectively.
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27 Jun 2016 - Pengana PanAgora Absolute Return Global Equities Fund
By: Australian Fund Monitors
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| Fund Overview | PanAgora believes the best way to find opportunities in the global markets is to combine fundamental analysis with robust quantitative techniques in order to filter the investment universe and select the investments. The Fund invests primarily in listed equity securities from a global universe of developed markets and a select group of emerging market countries. The Fund's objective is to seek absolute returns by identifying and exploiting multiple inefficiencies that may exist in global equity markets. These inefficiencies are primarily exploited through the use of a long/short equity strategy which aims to construct a portfolio that is generally neutral to market movements. As such the performance of the investment strategy is largely independent of the market's performance. The Fund seeks to achieve its objective by using a diversified set of strategies that have low correlation to one another. In addition, because many of these strategies are designed to generate profit under different market conditions, their combination is expected to result in more stable returns over time than any individual strategy in and of itself. |
| Manager Comments | The Fund's performance was due to the short-term portfolio which recouped losses suffered last month. Profits were primarily generated in the Financials, IT, and Consumer Discretionary sectors. The performance was dragged down by both long and short positions with notable losses incurred in Penn West Petroleum, Noble Corp and Ensco Plc which were down 40%, 26%, and 17% respectively. Click below to read the latest Fund Manager's Report. |
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QATO Capital Market Neutral Long/Short Fund
24 Jun 2016 - Australian Fund Monitors
QATO Capital Market Neutral Long/Short Fund rose 2.19% in May and is negatively correlated to the S&P/ASX-100 Index (beta of -0.33).
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24 Jun 2016 - QATO Capital Market Neutral Long/Short Fund
By: Australian Fund Monitors
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| Fund Overview | The fund targets a net market exposure of 0% to hedge broader market risks through 30 S&P/ASX-100 positions (15 long and 15 short equally weighted positions). The turnover is generally averaged around 30% of the total portfolio each month. The process is entirely systematic - stock selection and risk management are all employed in a rules based approach. The Market Neutral Long/Short Fund employs no financial leverage, no derivatives and no financial products to imitate leverage. The Investment Manager's three principal investment goals for the Fund are: 1. Market neutral long/short portfolio management with little correlation to equity markets; 2. Over a 3-5 year period, seeking to target annualised volatility of 15% per annum and annualised returns of 15-30% per annum above the Benchmark; Sharpe Ratio 1.0-2.0 and a negative beta to ASX listed equities; and 3. To provide investors with a co-investment opportunity alongside the founding members' investments in the Investment Manager's strategy. |
| Manager Comments | The first half of the calendar year 2016 will be characterised as one of the largest junk rallies since 2009, where the worst performing companies from 2015 became desirable. In addition, speculative trading of commodities in China caused commodity prices globally to rally aggressively. Fast forward to today and the commodities rally has fizzled and prices of major commodities are significantly below their April highs. This change suggests that the demand for risk (beta) has started to diminish and a reversion towards fundamentals is underway - producing a much more favourable environment for QATO's negative beta strategy. |
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