NEWS
29 May 2014 - Fund Review: Monash Absolute Investment Fund - April 2014
29 May 2014 - Fund Review: Insync Global Titans Fund April 2014
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 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
-
The Fund's unit price decreased by 1.0% in April. Key positive contributors for the month came from our holdings in British American Tobacco, Nestle, Glaxosmithkline and Sanofi. The main negative contributors were Discover Financial Services, Coach and Express Scripts. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside.
- 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.
Sean Webster
Research Manager
Insync Global Titans Fund AFM Review - April 2014 (pdf format)
28 May 2014 - KIS Asia Long Short Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | Whilst the Fund's primary strategy is focused on long/short equities, the ability to retain discretionary powers to allocate funds 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 (ex Japan incl. 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 | The Manager reported that: Within the Long Short portfolio no other single underlying position created an impact of more than 20bp this month. In March only 44% of our long and short ideas, i.e. excluding hedges, were winning. Unfortunately this month our success ratio was evenly balanced, rather than being biased to winning trades, with the average sized loss on a failed trade idea being very close to the profit on a winning trade idea. Within the portfolio's Hedge and Convertible Bonds exposure, there was no significant impact on returns for the month. |
| More Information | » View detailed profile of this fund |
27 May 2014 - Pengana Australian Equities Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | |
| Manager Comments | As at 30th April 2014, cash (including notes and preference shares) represented 23% of the Fund. The top five holdings by value were: DUET Group, ANZ Bank, Telstra, Resmed and Tatts Group. In addition, the Fund's exposure to non-Australian dollar earnings streams (inclusive of companies with global earnings profiles such as Resmed, Fox Group, CSL, Crown Resorts, NZ based companies and US dollar exposure) stood at 24%. |
| More Information | » View detailed profile of this fund |
27 May 2014 - Auscap Long Short Australian Equities Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund focuses on fundamental long and short investments. The Fund may utilise a multi-strategy approach if short term opportunities to increase returns, hedge the portfolio, protect capital or minimise volatility are found. The Fund is a high conviction fund and the combined portfolio will typically have 25-45 positions, investing primarily in stocks in the ASX200. The Fund may be net long, short or neutral depending on the strategies employed at the time. The Fund may hold cash so that it is in a position to take advantage of market volatility and compelling investment opportunities as and when they arise. The Fund may be geared up to 200% gross long or short and up to 150% net long or short. |
| Manager Comments | Average gross capital employed by the Fund was 123.9% long and 24.5% short. Average net exposure over the month was +99.4% and at the end of the month the Fund had 35 long positions and 7 short positions. The Fund Newsletter is entitled 'Australian Federal Government Budget 2014 ' Historical Indications As To The Potential Effect On Discretionary Spend' and is available on the AFM website under the Auscap profile. |
| More Information | » View detailed profile of this fund |
26 May 2014 - Nanuk Global Alpha Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | In 2013 Nanuk started to expand the focus of the fund away from just energy and include other industries related to the overarching theme of environmental sustainability, specifically water, waste, recycling, pollution control and agriculture. Nanuk is now investing across a universe in excess of 600 stocks and an aggregate market capitalisation over US$2 trillion. This was a logical move because, while the industries themselves are different, their characteristics and long term drivers are very similar. Nanuk has identified a large, diverse global universe of companies positively exposed to these shifts. Nanuk combines deep fundamental research into these companies with detailed analysis of technological development, policy direction and related economics within each of the relevant sectors to identify profitable trends and opportunities suitable for inclusion in the Fund. Nanuk's principal strategy is to invest, long and short, in securities that are mis-priced on an absolute or relative basis. The Fund aims to achieve long term capital appreciation while reducing volatility of returns and risk of capital loss through appropriate hedging and risk management strategies. |
| Manager Comments | The Monthly Report discusses performance noting that 'contributions from a number of long and short stock specific ideas were more than offset by losses incurred on positions across three significant thematic ideas represented in the portfolio, namely LED lighting component manufacturers, solar manufacturers and developers, and Chinese renewable energy generators. The Fund's exposures in these areas was increased following the meaningful price corrections experienced in March and early April and despite a short term rise these stocks fell sharply in the last week of the month. While we continue to maintain most of these positions in the portfolio due to their attractive valuation, position sizes have been reduced until we see clearer evidence that the market will respond positively to the developments we anticipate in these industries in coming months.' |
| More Information | » View detailed profile of this fund |
26 May 2014 - Allard Investment Fund
| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | |
| Manager Comments | At the end of April the asset breakdown of the portfolio stood at 75.8% invested in equities and 24.2% held in cash and fixed income. In terms of geographic breakdown the largest holdings were HK/China 36.7%, Singapore 15.2% and Korea at 8.8%. In terms of sectors the largest holdings were Financials 17.1% , Conglomerates 13.9% and Telcos at 8.5%. |
| More Information | » View detailed profile of this fund |
26 May 2014 - Hedge Fund Marketing and Fund Raising in 2014 and beyond
Hedge Fund Marketing and Fund Raising in 2014 and beyond
AIMA Australia is pleased to invite you to AIMAs next education event - Hedge Fund Marketing and Fund Raising in 2014 and beyond.
Date and Time: Wednesday 28 May 2014, 12:30 - 2pm.
Session Overview:
The panel will explore topics such as:
- Marketing and fund raising for Australian hedge funds & boutiques;
- Maintaining independence vs aligning with fund incubators / investment partners; and
- What investors are looking for?
Speakers:
Jarrod Brown - CEO, Bennelong Funds Management
John Corr - CIO, Aurora Funds
Nelson Lam - Director, Chase Corporate Advisory
Moderator:
Zarmeen Pavri, Pengana Capital
Speaker biographies:
Jarrod Brown - Jarrod joined Bennelong in September 2007 and has over 20 years experience in banking and funds management. He has worked across all elements of the funds management value chain in various executive positions with Standard & Poor's, IOOF Investment Management Limited and ING Australia. As Chief Executive Officer, Bennelong Funds Management, Jarrod is charged with developing Bennelong Group's asset management capability and is both the Responsible Manager and Director of various Bennelong Group companies. Jarrod holds a Bachelor of Business (Accounting), Graduate Diploma (Banking & Finance), Master of Business Administration and is a Graduate of the Australian Institute of Company Directors.
John Corr - John is Chief Investment Officer of Aurora and sits on the Board of the listed Aurora Funds Limited. He has over 27 years experience in financial markets. Prior to establishing Fortitude Capital (now part of Aurora Funds Limited), John was a Director at Citigroup Global Markets Australia. He worked in proprietary trading for eight years, trading local and overseas equities and equity derivatives, and was responsible for the management and development of a team of equity proprietary traders. From 1986 to 1995 John worked on the derivatives sales desk as a senior institutional dealer for a number of major investment banks, advising and executing for local and offshore institutions, corporates and trading houses. John is responsible for the investment management team at Aurora. He determines the appropriate portfolio structure and investment process for the investment strategies that Aurora manages. John works closely with all portfolio managers, providing direction and assessment of optimal risk opportunities. John has and continues to conduct a risk management program in Market Neutral and Derivative Strategies. The objective is to educate and implement a systematic, repeatable process for disciplined trading strategies and portfolio management. The Aurora Fortitude Absolute Return Fund, which John established in 2005, was awarded hedge fund of the year in 2008 and 2009 by AIMA. John holds a Bachelor of Commerce from the University of Wollongong.
Nelson Lam - Nelson Lam is a Director at Chase Corporate Advisory, an independent financial services specialist advisory firm, and heads up the funds management advisory practice in Chase. Prior to Chase, Nelson was Head of Investments for Ascalon Capital Managers Limited, a wholly owned subsidiary of Westpac Banking Group and more recently held the position of Chief Operating Officer for H3 Global Advisors, a successful Australian based hedge fund. At Ascalon, Nelson completed numerous investments and divestments of funds management business and funds and was the Chief Investment Officer for the Ascalon Seed Pool between 2006 and 2012. Nelson has held numerous Directorships on various funds management businesses and has been a member of the Australia Institute of Company Directors since 2006.
RSVP procedures
Space is limited so we recommend that you register early to avoid disappointment. Tickets are open to AIMA members and non member managers only and will be intially limited to 2 per organisation.
Please follow the link to register.
23 May 2014 - Hedge Clippings
April was a tough month at the office for Absolute Return and Hedge Fund managers based on the 70% of performance reports received to date.
While the ASX 200 Accumulation Index rose 1.77%, AFM's index of all funds lost 0.23%, with equity-based funds bearing the brunt, down an average of 0.34%. While we are used to, and would expect hedge funds to underperform in strongly rising markets, lagging by 2% and with a negative number to boot is unusual.
While the performance for a single month is disappointing, over 12 months there is little difference across all 333 funds which have gained 10.02% versus the ASX 200 accumulation index at 10.46%. Equity-based funds, which make up 60% of the total have done better, with a 12 month average return of 14.08%.
58% of fund returns to date were positive, against 90% over the past 12 months, while only 15% outperformed the ASX 200 in April, rising to 54% over 12 months.
There are probably a number of reasons for April's disappointing returns: Firstly divergences between large and small cap stocks, with the ASX 200 adding 1.7%, and the Small Cap Index falling 1.2%. As a further indication the ASX Top 20 rose 2.2% for the month, with yields once again driving this segment of the market. Although the absolute return sector is not homogenous it is fair to say that on average they have less exposure to the large end of the market, preferring to seek value down paths that are less trodden by broking analysts.
Secondly there was a sell-off in growth and tech stocks, reflecting the same scenario in the US, which have risen over the past 12 to 24 months to be on unacceptably high future earnings multiples. Once again this has been a happy hunting ground for many of Australia's smaller boutique fund managers, who have benefited significantly from positions in stocks such as Seek, Xero and REA.
Further damage was done to the small cap sector with anecdotal evidence that a couple of large institutional mandates had switched managers, and the change in portfolio holdings had damaged prices as a result of the limited liquidity at this end of the market.
It was interesting to note that some of the best performing funds, which had provided annualised terms of over 30% in the past 12 to 24 months, found April difficult and struggled to produce a positive return. We doubt that April was the start of a new trend, but was more likely to be a month in which various factors, which had previously provided some excellent returns, shifted, and the very nature of their styles will enable them to adjust accordingly.
Specific results received this week include the following PERFORMANCE and NEWS UPDATES:
The Totus Alpha Fund has returned a strong 39.11% over the last 12 month with a volatility of 16.37%.
Alpha Beta's Asian Fund recorded a return of -1.23% during April and 10.37% over the prior 12 months with a low volatility of 5.41%.
The Intelligent Investor Value Fund returned -3.44% (Small Cap Index -1.2%) in a weak small cap market with the 12 month result 18.67%.
Aurora Fortitude's Absolute Return Fund returned 0.01% in a choppy month for market neutral funds, bringing its annual return to 5.96%.
The Insync Global Titans Fund returned -1.0% in April with annual performance coming in at 15.97% with a Sharpe ratio of 1.39.
Cor Capital's Fund returned +0.51% for the month of April 2014. The total return since inception in August 2012 is 9.0% or 5.1% p.a.
FUTURE EVENTS: coming up this week
Wednesday 28 May in Sydney: Lunchtime education event presented by AIMA - the panel will explore topics such as Marketing and fund raising for Australian hedge funds & boutiques; Maintaining independence vs aligning with fund incubators / investment partners and more. Speakers include Jarrod Brown from Bennelong Funds Management and John Corr from Aurora.
28-30 May 2014 in Sydney: IBR Conferences presents the Asset Allocation Conference. This event has been designed to both update and educate investors by taking an in-depth look at these more adaptive asset allocation strategies and practices and where the best opportunities for high return lay in the current climate.
If you would like your Event listed in our calendar, please contact us.
And now for something completely different this week, I'd like this guy on my side - aged 18 and 134 kgs.
On that note, I hope you have a safe and happy weekend.
Best wishes,
Chris
CEO, AUSTRALIAN FUND MONITORS
Connect with me on LinkedIn Twitter Facebook
| Registration to AFM is free and provides information and performance data on Absolute Return, Hedge Funds and Alternative Investments, plus detailed infomation on Featured Funds. | Fund Managers and paid Subscribers also have access to details on Individual Managers and Funds, with historical results, key performance indicators, latest news and performance reports. | Tune into Sky Business on Foxtel every week on Monday at 2:10pm for AFM's weekly comment on Hedge Funds. |
Australian Fund Monitors are helping to raise awareness to support research into prevention and cure for cerebral palsy. For more information visit www.cpresearch.org.au or contact me by email.
