Performance Report: AR Capital - Ascot Fund

17 Jan 2011 - Australian Fund Monitors

AR Capital's Ascot Fund ends 2010 with a positive result, and a positive outlook for 2011.

17 Jan 2011 - Performance Report: AR Capital - Ascot Fund

By: Australian Fund Monitors

Report Date	16 January 2011
Manager	AR Capital Management
Fund Name	AR Capital - Ascot Fund
Strategy	Equity Long/Short
Latest Return Date	December 2010
Latest Return	0.77%
Latest 6 Months	2.61%
Latest 12 Months	-2.59%
Latest 24 Months	17.40%
Annualised Since Inception	11.29%
Inception Date	01 August 2005
FUM (millions)	AU$81
Fund Overview	The Ascot Fund is an absolute return fund with long/short capability, investing in Australian/NZ equities, derivatives and hybrid instruments with a focus on the ASX 200. Fundamental analysis, market timing and risk management are essential components of the fund's strategy. The fund manager, AR Capital Management (ARCM), has an investment team with over 50 years' aggregate market experience, and the owners of ARCM account for approximately 20% of the total units in the fund.
Manager Comments	In spite of the financial headlines being remarkably similar to those of January 2010 (e.g. Sovereign debt concerns in Europe, and slowing growth and inflation in China) AR Capital remain positive on the broad outlook for the global economy. Supporting their view is that the GFC is one year further away, and although the world still has significant fiscal imbalances, the basic financial mechanisms underpinning major economies and activity are working. Australian listed companies have generally speaking put themselves in a strong financial position, and Australia's banking system has proven to be world class. AR do not believe valuations are stretched, and notwithstanding the severity of the floods in Queensland and their effect on earnings of specific sectors such as mining and insurance, are not overly concerned on the economic implications for the broader economy. As a result AR continues to remain a stock picker, and is not taking an aggressive bet on the market's direction, remaining approximately 45% net long, and taking profits as price targets are achieved or stops triggered.
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Performance Report: Herschel Absolute Return Fund

14 Jan 2011 - Australian Fund Monitors

Herschel's December result caps off their fifth consecutive positive year as resources continued to outperform industrials, and small caps outperformed large caps.

Performance Report: Agora Absolute Return Fund

13 Jan 2011 - Australian Fund Monitors

Agora's Absolute Return Fund ends the year with a positive December result to cap off a strong six months, and retains a positive outlook for equities.

13 Jan 2011 - Performance Report: Agora Absolute Return Fund

By: Australian Fund Monitors

Report Date	11 January 2011
Manager	Agora Asset Management
Fund Name	Agora Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	December 2010
Latest Return	3.42%
Latest 6 Months	8.62%
Latest 12 Months	-2.12%
Latest 24 Months	21.35%
Annualised Since Inception	8.24%
Inception Date	18 March 2004
FUM (millions)	US$161
Fund Overview	The Fund invests in long and short positions in securities listed or to be listed on the Australian Stock Exchange. All positions are driven by fundamental research which incorporates both bottom up stock specific research and top down macro theme analysis. The process utilises in depth stock research from Agora's internal analysis to identify the best risk adjusted long and/or short trading opportunities based on expected share price movements. The mix of long and short positions is entirely reliant on the number of opportunities identified and can vary significantly depending upon market conditions. Agora is a very active manager and likes to be able to act quickly at all times so this sees the Fund have a bias toward more liquid (large cap/top 120) stocks as these provide greater liquidity and therefore meaningful opportunity for Agora's concentrated positions and size. The portfolio usually invests in no more than 20 stocks. Position weights are typically between 2.5%-5% of fund value with the same position size and risk management parameters applied equally to both long and short positions. The portfolio benefits equally over time from short term (20 days) trading opportunities and medium term (2 quarters) investments. Total fund equity exposure is unconstrained and is an outworking of the bottom up, stock specific positions identified however as an indication calendar year 2007 saw an average net equity exposure of 60%. The fund does not employ leverage therefore gross equity exposure cannot exceed +100%. The fund is previously known as the Alpha Absolute Return Fund No. 2
Manager Comments	Agora's Absolute Return Fund ended the year with a positive December result to cap off a strong six months. Agora believes that as long as US growth continues to improve and China is seen to be managing its domestic concerns regarding inflation - without prejudicing growth, then the outlook for equities is positive. However continued concerns about European debt will remain a negative influence on global risk, and expects a volatile reporting period ahead. The portfolio maintains a strong exposure to resources, concentrated in the more liquid large cap area, and continues to add exposure to $US denominated earnings while looking to add exposure to domestic cyclicals at the right time.
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Performance Report: Bennelong Securities Long Short Equity Fund

12 Jan 2011 - Australian Fund Monitors

Bennelong remains modestly optimistic on improving global economic activity while enjoying December's rally in the Materials, Energy and Small Cap sectors.

Performance Report: Headland Global Diversified Fund

11 Jan 2011 - Australian Fund Monitors

Headland finishes 2010 with a strong December result on the back of short US$ positions, and gains in soft commodity prices due to adverse weather conditions.

Performance Report: Optimal Australia Absolute Trust

10 Jan 2011 - Australian Fund Monitors

Optimal Australia closes 2010 up 13.64% for the year, with a positive performance in every month, but with a cautionary comment on risk in Australia's two speed economy.

10 Jan 2011 - Performance Report: Optimal Australia Absolute Trust

By: Australian Fund Monitors

Report Date	09 January 2011
Manager	Optimal Fund Management
Fund Name	Optimal Australia Absolute Trust
Strategy	Equity Long/Short
Latest Return Date	December 2010
Latest Return	0.86%
Latest 6 Months	9.22%
Latest 12 Months	13.64%
Latest 24 Months	40.69%
Annualised Since Inception	18.20%
Inception Date	15 September 2008
FUM (millions)	AU$55
Fund Overview	The investment objective of the Fund is to seek to achieve above average returns in absolute terms, through investing in listed securities in Australia and New Zealand, subject to the overarching requirement of capital preservation. Investments will predominantly be in equity securities but may include fixed interest instruments, money market instruments, derivatives and foreign exchange contracts. 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	A positive return for Optimal Australia's absolute return trust in December made it 12/12 for the year, although the manager sounds a note of caution about Australia's two speed economy. Commodities and the Australian dollar closed the year at or close to their highs, while the retail sector lagged as consumer savings increased. Meanwhile earnings estimates for industrials fell by 10% over the past 6 months, but the market still seems to have a 12 month forward target of 5,500 - the same as it was in January 2010. In summary Optimal's view is that Australia's double speed economy provides reasonable value but with above average risk: The domestic economy is slowing appreciably while the resources boom (bubble?) is accelerating.
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Performance Report: Fortitude Capital Absolute Return Trust

20 Dec 2010 - Australian Fund Monitors

Fortitude continues to benefit from the high level of merger and acquisition activity in November

Performance Report: Merricks Capital Multi-Strategy Fund

17 Dec 2010 - Australian Fund Monitors

Merricks\\' Multi Strategy Fund benefits across all three sub strategies in November, with Event Driven leading the way

Performance Report: Herschel Absolute Return Fund

16 Dec 2010 - Australian Fund Monitors

Herschel's Australian equity long/short fund makes broad based gains in November, particularly in mid cap resource stocks.

Performance Report: Bennelong Securities Long Short Equity Fund

13 Dec 2010 - Australian Fund Monitors

Bennelong assume a more positive (albeit only modestly) outlook for the US economy, but remain watchful and selective.

Fund Monitors Pty Ltd

News

17 Jan 2011 - Performance Report: AR Capital - Ascot Fund

14 Jan 2011 - Performance Report: Herschel Absolute Return Fund

13 Jan 2011 - Performance Report: Agora Absolute Return Fund

12 Jan 2011 - Performance Report: Bennelong Securities Long Short Equity Fund

11 Jan 2011 - Performance Report: Headland Global Diversified Fund

10 Jan 2011 - Performance Report: Optimal Australia Absolute Trust

20 Dec 2010 - Performance Report: Fortitude Capital Absolute Return Trust

17 Dec 2010 - Performance Report: Merricks Capital Multi-Strategy Fund

16 Dec 2010 - Performance Report: Herschel Absolute Return Fund

13 Dec 2010 - Performance Report: Bennelong Securities Long Short Equity Fund

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