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25 Jun 2021 - Performance Report: Longlead Pan-Asian Absolute Return Fund
By: Australian Fund Monitors

Report Date25 June 2021
ManagerLonglead Capital Partners
Fund NameLonglead Pan-Asian Absolute Return Fund
StrategyEquity Long/Short
Latest Return DateMay 2021
Latest Return-7.48%
Latest 6 Months
Latest 12 Months
Latest 24 Months (pa)
Annualised Since Inception-6.24%
Inception Date01 December 2020
FUM (millions)AU$83
Fund OverviewThe Fund will invest substantially all of its assets, to the extent not retained in cash or cash equivalents, in Class G Participating Shares of the Longlead Absolute Return Feeder Fund Ltd, an exempted company incorporated with limited liability in the Cayman Islands, which in turn invests substantially all of its assets in Longlead Absolute Return Master Fund Ltd, an exempted company incorporated with limited liability in the Cayman Islands, which predominantly deploys a long/short investment strategy based on fundamental, bottom up stock selection procedures and employs risk management techniques designed to manage portfolio risk.
Manager CommentsThe Longlead Pan-Asian Absolute Return Fund returned -7.48% in May, with this performance predominantly attributable to a correction in Taiwanese equities which was the Fund's largest geographic exposure.

Intra-month, the Taiwanese index fell 14% peak to trough with this selloff attributable to a Covid-19 virus spike in the country. Longlead noted the magnitude of the selloff was surprising, being disproportionately greater than other markets that have also had to navigate recent virus spikes and led to heavy selling pressure in many of the Fund's long holdings in Taiwan during the month. As the initial surprise of the event passed, Taiwanese longs began to rebound late in May, continuing into early June.

Taiwan represented the vast majority of the Fund's drawdown in May. By sector, Financials exposures generated positive performance in May, while losses were experienced in Information Technology and Materials positions.

The team remains constructive on the Fund's Taiwanese investments. The government has introduced measures to stem the spread of the virus and the team expects that the companies in which the Fund is invested will ultimately rebound. Notwithstanding this, the Fund's risk management protocol is to reduce gross exposure in response to broad based events such as these where market wide uncertainty may persist for an extended period. Once conditions begin to normalise the Fund can take the opportunity to add exposure back.
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