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Printed: 10 June 2023 9:07 PM


19 Oct 2021 - Performance Report: Longlead Pan-Asian Absolute Return Fund

By: Australian Fund Monitors

Report Date19 October 2021
ManagerLonglead Capital Partners
Fund NameLonglead Pan-Asian Absolute Return Fund
StrategyEquity Long/Short
Latest Return DateSeptember 2021
Latest Return2.02%
Latest 6 Months-4.36%
Latest 12 Months
Latest 24 Months (pa)
Annualised Since Inception-0.72%
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 rose +2.02% in September, taking quarterly performance to +2.57%. By contrast, the MSCI All Country Asia Pacific ex-Japan Index (AUD) fell -3.60% in September and -6.19% over the quarter.

Longlead noted equity markets had a challenging quarter, initially driven by concerns over the imposition of regulations on a number of industries in China and ongoing challenges to global supply chains. Later in the quarter, these worries extended to rising bond yields and the spectre of reduced central bank support for markets in the period ahead.

In September, China Evergrande Group, China's largest property developer, announced that a slowdown in property sales was placing pressure on its cash flow and putting it at risk of defaulting on its debt repayments. This created widespread concern of broader contagion in the debt markets that flowed through to weaker performance in equities. The cumulative impact of these factors resulted in the weakest period of equity market performance since the outbreak of the pandemic in the March 2020 quarter. The Fund navigated this challenging backdrop effectively, generating positive returns on both the long and short sides of the portfolio in the quarter. The Fund generated positive returns in Consumer Staples, Materials and Information Technology positions, while experiencing draw downs in Healthcare and Communication Services names. By country, gains were realised in Australia, the United States and Japan, while losses were seen in China and Taiwan.
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