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Printed: 05 February 2023 9:32 AM

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13 Dec 2022 - Performance Report: DS Capital Growth Fund

By: FundMonitors.com

Report Date13 December 2022
ManagerDS Capital
Fund NameDS Capital Growth Fund
StrategyEquity Long
Latest Return DateNovember 2022
Latest Return1.94%
Latest 6 Months-1.23%
Latest 12 Months-15.74%
Latest 24 Months (pa)1.22%
Annualised Since Inception12.57%
Inception Date01 January 2013
FUM (millions)AU$336
Fund OverviewThe Fund aims to deliver an average return of at least 10% p.a. through the economic cycle, with a focus on capital preservation. The Fund comprises a concentrated portfolio of small and mid-cap investments selected through a process of quantitative and qualitative analysis.

The investment team looks for industrial businesses that are simple to understand, generally avoiding large caps, pure mining, biotech and start-ups.

They also look for:

- Access to management;
- Businesses with a competitive edge;
- Profitable companies with good margins, organic growth prospects, strong market position and a track record of healthy dividend growth;
- Sectors with structural advantage and barriers to entry;
- 15% p.a. pre-tax compound return on each holding; and
- A history of stable and predictable cash flows that DS Capital can understand and value.
Manager CommentsThe DS Capital Growth Fund rose by +1.94% in November, a difference of -4.64% compared with the ASX 200 Total Return benchmark which rose by +6.58%.

The DS Capital Growth Fund has a track record of 9 years and 11 months and has outperformed the ASX 200 Total Return benchmark since inception in January 2013, providing investors with an annualised return of 12.57% compared with the benchmark's return of 9.08% over the same period.

On a calendar year basis, the fund has only experienced a negative annual return once in the 9 years and 11 months since its inception. Over the past 12 months, the fund's largest drawdown was -21.56% vs the index's -11.9%, and since inception in January 2013 the fund's largest drawdown was -22.53% vs the index's maximum drawdown over the same period of -26.75%. The fund's maximum drawdown began in February 2020 and lasted 6 months, reaching its lowest point during March 2020. The fund had completely recovered its losses by August 2020.

The Manager has delivered these returns with 1.71% less volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 five times over the past five years and which currently sits at 0.91 since inception. The fund has provided positive monthly returns 88% of the time in rising markets and 33% of the time during periods of market decline, contributing to an up-capture ratio since inception of 63% and a down-capture ratio of 66%.
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