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Printed: 08 October 2022 9:09 AM

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22 Oct 2021 - Performance Report: Paragon Australian Long Short Fund
By: Australian Fund Monitors

Report Date22 October 2021
ManagerParagon Funds Management
Fund NameParagon Australian Long Short Fund
StrategyEquity Long/Short
Latest Return DateSeptember 2021
Latest Return0.13%
Latest 6 Months39.09%
Latest 12 Months54.56%
Latest 24 Months (pa)36.27%
Annualised Since Inception16.02%
Inception Date28 February 2013
FUM (millions)AU$60.7
Fund OverviewThe Paragon Fund is a concentrated long/short Australian listed equities product that is fundamentally driven with a focus on the industrial and resource sectors.

Paragon's unique investment style, comprising thematic led idea generation followed with an in depth research effort, results in a concentrated portfolio of high conviction stocks.

Conviction in bottom up analysis drives the investment case and ultimate position sizing:

* Both quantitative analysis - probability weighted high/low/base case valuations - and qualitative analysis - company meetings, assessing management, the business model, balance sheet strength and likely direction of returns - collectively form Paragon's overall view for each investment case.
* Paragon will then allocate weighting to each investment opportunity based on a risk/reward profile, capped to defined investment parameters by market cap, which are continually monitored as part of Paragon's overall risk management framework.

The objective of the Paragon Fund is to produce absolute returns in excess of 10% p.a. over a 3-5 year time horizon with a low correlation to the Australian equities market.
Manager CommentsThe Paragon Australian Long Short Fund rose by +0.13% in September, an outperformance of +1.98% compared with the ASX 200 Total Return Index which fell by -1.85%. Over the past 12 months, the fund has risen by +54.56% compared with the index which has returned +30.56%, and since inception in March 2013, the fund has returned +16.02% p.a. vs the index's +8.74%.

Since inception in March 2013 in the months where the market was positive, the fund has provided positive returns 69% of the time, contributing to an up-capture ratio for returns since inception of 113.09%. Over all other periods, the fund's up-capture ratio has ranged from a high of 267.14% over the most recent 24 months to a low of 119.58% over the latest 60 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.

The fund has a down-capture ratio for returns since inception of 73.98%. Over all other periods, the fund's down-capture ratio has ranged from a high of 115.18% over the most recent 24 months to a low of -7.03% over the latest 12 months. A negative down-capture ratio indicates that, on average, the fund delivered positive returns in the months the market fell over the specified period.
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