Hedge Clippings | Friday, 22 July 2022
You probably don't need Hedge Clippings to bring to your attention what a miserable first half of 2022 it has been: Putin's invasion of Ukraine; incessant rain in Queensland and NSW leading to multiple "1 in 100 year" floods; a continuation - and now apparently an uptick of COVID cases; and in Europe and North America, a heat wave and catastrophic fires.
All that before we even consider the economy and markets, where the emergence of long dormant inflation has led to increased interest rates, and the resulting equity price bubble well and truly bursting. A cursory glance at FundMonitors' Peer Group tables shows a sea of negative numbers, as do the major indices such as the ASX, Dow Jones, S&P500 and Nasdaq. These in turn have resulted in widespread negative returns from managed funds - particularly from some of those that had previously benefitted from said price bubble, and had crowed about their "skill" in riding it. Remember that old saying about roosters to feather dusters?
Other fund managers, possibly older and wiser, were content to take what returns they could, when they could, understanding that nothing lasts forever. Looking at the Top Ten performing funds over the 12 months to June, avoiding long only equities, and particularly the small cap sector, was the place to be, with managed futures/currency funds taking out four of the top ten places, long/short of one iteration or another a further four, one private equity, and digital, or cryptocurrency, taking the last spot (+22.28%) in spite of Bitcoin's implosion.
Naturally, Equity Alternative Funds performed well compared with the Long Only sector in a reversal of the broad sector performance over the past couple of years.
Singling out Australian Equity Long funds, there were still some impressive performances, albeit fewer of them, and with more subdued results ranging from +21.22% down to 4.94% - still impressive given the underlying markets:
To view performance and fact sheets of all 700 funds, click here.
News & Insights
Consider the evidence for long term returns | Glenmore Asset Management
The Long and The Short: Finding solace in the short | Kardinia Capital
10k Words | Equitable Investors
June 2022 Performance News
Delft Partners Global High Conviction Strategy
Digital Asset Fund (Digital Opportunities Class)
Bennelong Kardinia Absolute Return Fund
Bennelong Concentrated Australian Equities Fund
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